Review on Uniswap (V2) by erdi yılmaz
Uniswap
For UNI, we can say that the decentralized Uniswap Exchange is the management token. Uniswap Exchange was founded by Hayden Adams in November 2018. Adams carried out this project after reading the post that Vitalik Buterin, one of the co-founders of Ethereum, advised blockchain developers to create a platform that works on the Uniswap principle.
Uniswap is a protocol developed to run on the Etrhereum Blockchain. This protocol allows users to exchange ERC-20 tokens decentrally. With Uniswap, users can hold ERC-20 tokens in their own wallets as well as exchange them on the exchange. This way, users can keep their assets safe as they do not have to transfer their tokens to the exchange during the exchange.
Uniswap is referred to as "Automatic Market Maker" as it allows liquidity flow to the pools on the platform so that participants can trade comfortably. Those who make liquidity have the opportunity to earn commission from the trade made in their pool. This trade commission is determined as 0.4% per transaction between liquidity makers.
Swap pairs can be created simply via smart contracts for the use of all participants. Since Uniswap does not aim to make a profit from the trade made, the commission fees are only shared among those who provide liquidity to the system. In this way, users have the opportunity to trade by paying lower commission fees on this platform compared to other decentralized crypto currency exchanges.
Pros
- An innovative project in the Ethereum Blockchain
- Opportunity to trade through your own wallet without transferring it to the exchange
Cons
- high commission fees
