Uniswap Price

What Is Uniswap (UNI)?

Uniswap (UNI) is an open-source, decentralized exchange protocol for automated market making. It is one of the largest cryptocurrency decentralized exchanges. 

Like most other decentralized finance (DeFi) projects, the Uniswap network runs on the Ethereum blockchain and is based on smart contracts. Issued tokens work with Ethereum's ERC20 standard. 

There are numerous advantages over centralized exchanges, but also disadvantages. Here, users have to decide for themselves which provider is the right one for them. For example, Uniswap can only offer coins for trading that are mapped on the Ethereum blockchain.

Via Uniswap, users can swap ETH for other coins of projects listed on Uniswap. There are no order books; everything runs fully automatically via the protocol. 

The swap of ETH to ERC20 tokens takes place via the Uniswap algorithm. This is designed to automatically bring buyers and sellers together, obviating an order book entirely. This greatly simplifies the whole transaction process. 

Because the Uniswap ecosystem is open-source, the code can be viewed by anyone. This is necessary with any automated market maker (AMM) to ensure that users aren’t scammed.

What Is UNI?

Uniswap is a decentralized exchange, and its users determine the future developments of this network. Uni is, therefore, primarily used for the administration and development of the Uniswap network. UNI holders are thus entitled to vote for future changes to the system. 

A Governance Token

UNI is primarily used as an administration and governance token. A governance token is useful in promoting community-led growth and self-sustainability. As such, each UNI token is associated with the right to vote on the future of Uniswap. 

UNI has only been in circulation since September 2020, but UNI is tradable on the open market, and is available on most of the popular cryptocurrency exchanges.

Who Is the Founder of Uniswap (UNI)?

Uniswap was founded in November 2018 by Hayden Adams, a former mechanical engineer at Siemens. This platform is based on the Ethereum blockchain and uses the Solidity programming language. 

In addition, the Uniswap software is subject to the GNU General Public License, which makes it accessible to anyone. Uniswap gained enormous popularity in 2020, riding the wave of the DeFi hype and facilitating automated trading. 

How Does Uniswap (UNI) Work?

Uniswap is a decentralized platform for trading cryptocurrencies. It’s based on various smart contracts that allow the exchange of coins, and differs in several ways from conventional exchanges. 

The Uniswap protocol enables developers, liquidity providers and traders to participate in an open and accessible financial marketplace. Uniswap aims to solve the liquidity issue through automated solutions.

You cannot create an account with Uniswap, but access is made directly via a suitable Ethereum wallet, such as MetaMask. After successfully connecting your wallet, you’ll have access to Uniswap and will be able to swap Ethereum for other crypto assets.

How to Swap Tokens with Uniswap (UNI)

First, you need to select the desired token that you want to purchase on Uniswap. You will also be able to view UNI price before proceeding. After that, all you have to do is specify your desired number of tokens before you start trading. 

Trading on Uniswap is usually conducted using Ether (ETH), but there are also numerous other trading pairs. Thus, stablecoins such as DAI, cryptocurrency and fiat currency can also be used. 

To deposit funds in their wallets, traders can fall back on crypto exchanges such as Bybit, where they can buy ETH and other cryptocurrencies via bank transfer and then transfer them to their wallets.

Next, connect the wallet to the Uniswap application using a Web 3.0 browser, such as Google Chrome, Brave Browser or Mozilla Firefox. 

Here, you look for the respective trading pair, which is identified by the smart contract address. Since anyone can create an ERC20 token, there are numerous copies of cryptocurrencies in circulation. Therefore, you must double-check the official contract address on the Uniswap application before proceeding. 

On Uiswap, enter the amount of UNI tokens you would like to purchase and you'll be able to view the UNI price before proceeding. Once you've decided to go ahead with that particular UNI price, simply click Swap to complete the transaction at the stated UNI price. 

How to View Uniswap (UNI) Token Order

After the exchange on Uniswap, the respective token will appear automatically in your wallet. If it doesn't, you can add it manually using the function Add Custom Token, commonly available in wallets. Using a blockchain explorer such as Etherscan, all tokens assigned to a specific Ethereum address can be viewed.

Keep in mind that you must always have enough Ethereum for the transaction fees on Uniswap in your wallet.

Why Is UNI Valuable?

The value of UNI is tied to the performance of the Uniswap decentralized exchange. This means that the prosperity of Uniswap ultimately results in the appreciation of the UNI token, and needless to say, Uniswap is the future of decentralized exchange and DeFi. 

Although there are numerous decentralized exchanges, many users consider Uniswap to be the leading and preferred platform. Uniswap is constantly introducing improvements and making it safer and convenient to use. With UNI, users can choose to actively participate in shaping the future of decentralized exchange.

Furthermore, several DeFi projects first publish their tokens on the Uniswap protocol as part of an initial decentralized exchange offering (IDO), which offers numerous advantages over previous methods such as initial coin offerings (ICOs) and initial exchange offerings (IEOs). 

The attractive model for liquidity providers (LP) is also suitable for private investors and larger institutions. Since fees apply to every trade, Uniswap can be used to provide a passive source of income. By depositing liquidity in different pools, Uniswap providers always receive a share of the resulting trading fees.

What Makes Uniswap (UNI) Unique?

Uniswap stands out from other decentralized exchanges thanks to its pricing mechanism and the use of smart contracts. 

Uniswap Pricing Mechanism

Unlike many other exchanges, Uniswap doesn’t work with the usual order books, but calculates UNI price from the concrete liquidity available. This is done by making the process of market making automated. As a result, swaps via Uniswap should be more affordable and done with more efficiency than on comparable platforms. 

For example, if you want to exchange Bitcoin for Ether, you publish an offer and wait for someone to respond to it. 

If you want to trade actively to earn a share in UNI price changes, you must regularly check your trading bids and adapt them to the current market conditions. This means additional work, or the need to develop clever trading bots that engage in automated trading and thus make it possible to realize profits even at low, volatile prices.

With Uniswap, the current market exchange rates are calculated automatically. This is intended to increase the speed of trading and simplify investing significantly. However, this only applies for Ether and ERC20 tokens. 

If you want to trade Bitcoin and other non-Ethereum-based cryptos, you have to look for solutions like Wrapped Bitcoins (WBTC). For ERC20 tokens, however, trading pairs can be set up completely freely. New currencies can also be quickly integrated into trading this way.

Uniswap Smart Contracts

Uniswap uses various smart contracts that allow the exchange of coins. This is usually done with the liquidity pools. Two different crypto coins are always deposited into a liquidity pool. For example, these can be Ether and Wrapped Bitcoin. If there isn’t yet a liquidity pool for this trading pair in the system, it will be used as a new smart contract on the Ethereum blockchain.

If you want to switch WBTC to ETH (or vice versa), you can now do so with the help of this liquidity pool. The following applies: If a trading partner wants to withdraw coins from the pool, they must pay for them in the corresponding currency. 

The price is calculated according to the simple equation x * y = k, where: 

x and y = quantities of the two paired tokens, and k is constant

Interestingly, the founder of Uniswap, Hayden Adams, prides himself on being the inventor of the implementation of this formula on Uniswap.

Uniswap's smart contracts also allow the option of reducing the fee share for investors to 0.25%, paying out by 0.05% to UNI holders and financing further development of Uniswap.

How Many UNI Tokens Are in Circulation?

As of July 7, 2022, UNI has a live market cap of approximately $3.92 billion. Its current circulating supply is 7.34 million UNI tokens, with a total supply of 1 billion UNI that will be made available over the span of four years. 

After the total supply is made available to the market, in September 2024, Uniswap will launch a 2% perpetual inflation rate to ensure that participation within the network will continue.

In terms of token distribution, 60% is distributed to Uniswap users, with users who have used Uniswap before September 1, 2020 being able to claim 15% of it, even if their submitted transactions back then were not successful.

The remaining 40% will be distributed to team members, investors and advisors based on a four-year vesting schedule, with them receiving 21.51%, 17.8%, and 0.69% respectively.

How to Mine UNI

Uniswap tokens cannot be mined using proof of work, but it is possible to do so through liquidity mining. This means that UNI tokens are distributed to users through the liquidity pools.

How to Store the Uniswap Token (UNI)

UNI is an ERC20 token. This means you can store Uniswap tokens in any reputable ERC20 wallet, such as MetaMask, Ledger Nano S and others. 

How to Buy UNI 

You can buy UNI from any top crypto exchange, including Bybit. 

Buying UNI on Bybit 

To purchase UNI on Bybit, simply follow these steps:

1. Head to the spot trading page of UNI. 

2. Select your trading pair on the left side of the page. You can trade USDT for UNI.

3. Choose the type of order you’d like to make: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the amount of UNI you want to buy.

4. Click on Buy UNI.

5. Once you’ve confirmed that the information is correct, click on Buy UNI.

6. View your order details under Active on the web page, or Orders if you’re using the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount of USDT you’ve paid to buy UNI.

3. Click on Buy UNI.

4. Once you’ve confirmed that the information is correct, click on Buy UNI.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

1. Market Price: Order price need not be set.

2. Limit Price: Order price needs to be set.

4. According to order types:

1. Market Buy: Enter the amount of USDT you’ve paid to buy UNI.

2. Limit Buy: Enter the amount of UNI you want to buy.

5. Click on Buy UNI.

6. Once you’ve confirmed that the information is correct, click on Buy UNI.

7. View your order details under Conditional on the web page, and All Orders → Current Orders on the Bybit app.

For more help, you can also visit the Bybit spot trading guide.