What is Uniswap UNI and how to use this token
Uniswap (UNI) TokenModified Date:- Published Date:-
What is Uniswap UNIand and how to use this token
Uniswap isthe largest decentralized crypto exchange (DEX) running on the Ethereum blockchain.Its native governance token is the UNI. Uniswap is a protocol on the Ethereumblockchain for swapping all ERC-20 tokens. Unlike centralized exchanges, whichare set up to charge transaction fees, Uniswap is designed more as a tool forthe community to trade tokens without platform fees or middlemen.
Unlikewell-established, centralized crypto exchanges (CEXs) like Binance or Coinbase,the Uniswap protocol uses smart contracts to facilitate trading of ERC-20tokens, acting as an automated market maker (AMM). The AMM model, which powersmost decentralized exchanges, does away with the traditional order book, whichwould contain all bid and ask (buy and sell) orders on an exchange. Rather thanstating the current market price of an asset, an AMM conjures liquidity poolsthrough smart contracts. The pools then execute trades according to presetalgorithms.
Uniswap wasone of the first DEXs to create an automated liquidity protocol to facilitatetrades. Unlike well-established, centralized crypto exchanges (CEX) likeBinance or Coinbase, the Uniswap protocol uses smart contracts to facilitatetrading of ERC-20 tokens, acting as an AMM. Uniswap was one of the first DEXsto create an automated liquidity protocol to facilitate trades.
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