Uniswap (UNI)

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Uniswap (UNI) is a token issued on September 16, 2020, by the decentralized exchange of the same name. On the same day, he appeared in the listing of the Binance exchange. Uniswap has been actively growing, developing, and self-sustaining under the full control of the community since its inception.

The introduction of UNI (ERC-20 token) is needed mainly to support governance principles that help the protocol continue to evolve further. The editors of Profinvestment.com have prepared an overview of the exchange and the Uniswap token and their functional features.

Uniswap is an automated liquidity protocol for the exchange of ERC-20 tokens and the Ethereum cryptocurrency. It is GPL-licensed open-source software. Allows you to trade quickly and efficiently, eliminating intermediaries. Where possible, most actions are based on decentralization and censorship resistance.

Uniswap is a significant supplier of gas to the Ethereum network due to the numerous transaction fees in this protocol; in addition, it is one of the most demanded decentralized applications at the moment.

It is based on the AMM (Automated Market Maker) system. Liquidity is created by pools with ERC-20 tokens. Liquidity providers charge a fee for each exchange (0.3%); these fees are redirected to the reserve fund of the pool. Going forward, UNI holders will receive 0.05% of each commission, while liquidity providers will receive the remaining 0.25%. Uniswap is not the first project with AMM, but it definitely popularized the development of this direction, as a result of which other similar protocols began to appear.

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