what is uniswap reddit

As the decentralized finance (DeFi Decentralized Finance (DeFi) takes the decentralized concept of blockchain and … However, this does not scale linearly. Last September 17, 2020, Uniswap set up the governance token referred to as UNI. This can be avoided by providing liquidity to assets that are strongly correlated such as stablecoin pairs (USDC-DAI) or derivatives of ETH (wETH-ETH, sETH/ETH). Origins of Uniswap. Professional market makers who ensure that exchanges have enough liquidity, need to be able to rapidly cancel and update their orders when market prices move (which they always do!). If a pool is highly volatile, goes up and down and up and down over a period of months and ends up at a roughly similar price level when you exit than when you entered, you are almost certain to exit with substantial profit. While this technology has its limits, it could have some interesting impact on the future of untrusted token exchange. At the time of writing, it consists of 200M USDC tokens and 570K ETH tokens. The Uniswap Token. Seconds ago you provided 10% of this liquidity (10,000 USDC and 100 ETH). Uniswap competition continue to grow, since last few week daily more 2 to 3 defi project launching. Jobs. Uniswap supported wallets. Uniswap, in simple terms, is a platform that allows you to swap ERC20 tokens.Unlike centralized cryptocurrency exchanges (CEX), Uniswap is a decentralized exchange (DEX) that lets you buy and sell tokens through swaps without an order book. I'm very bullish on Uniswap and love the tech under it. This concept is called “impermanent loss”. Got it for free from CB at $5something and now it's breached $20 in less than a month. Trying to buy 100 ETH instead of 10 ETH does not require merely 10x the USDC. If you want to avoid IL alltogether, provide liquidity to correlated assets: As we’ve seen, relative price changes in the assets can cause IL. For example, if ETH trades at a premium on Uniswap, they can buy ETH on Coinbase and sell it on Uniswap to make a profit. Now you might ask yourself where the innovation behind Uniswap is if you can’t even make large orders without incurring large slippage. Uniswap currently has the second-largest number of users (roughly 82,000). This loss is called impermanent loss (IL) because it is only a “virtual loss” as long as you leave your liquidity in the pool. Blog Introducing Uniswap V3. UniSwap Fundamental Analysis. This is quite poor for an exchange that has been active for more than 2 years. Indeed, I was already impressed by how well it works; but reading how it works underneath, made me appreciate the genius behind the concept of DEX. ReddIt. Generally, impermanent loss is much smaller than the price deviation between the two assets. Uniswap is a protocol for exchanging ERC-20 tokens on Ethereum. Dapp use is the reason the Ethereum gas fee is so high and Uniswap is the number one contributor to high gas fees. Uniswap is a decentralised exchange protocol which launched on the Ethereum mainnet in November 2018. Introduced on the 16th September 2020, the Uniswap token, or UNI, is a governance token that allows users to take part in the future of the Uniswap protocol. These market forces keep the prices between Uniswap and the rest of the market in balance. I might get more! Most decentralized exchanges at the time were using orderbooks, a concept borrowed from the traditional world, in which buyers & sellers submit orders, which get matched to each other by the exchange. They are distributed monthly and used to weight your vote on polls. Paste your Ethereum address and you’ll see your ROI & impermanent loss. Uniswap is completely free of orderbooks. Use Uniswap. We use cookies on our websites for a number of purposes, including analytics and performance, functionality and advertising. It even takes into account $UNI rewards and shows you the best performing pools. You can not submit an order that is below or above the quote, there is always only one price on Uniswap. In our example, there was just one trade of 100 ETH generating $33 (0.3%) to the protocol and its liquidity providers. It was created by Hayden Adams who was trying to learn Solidity, the programming language of the Ethereum network. So as more ETH is being bought from the pool, the higher the price of ETH becomes. Without the presence of any significant party, anybody with an Ethereum wallet may trade tokens. Providing liquidity on Uniswap on the other hand is incredibly easy. One needs to thoroughly understand trading and the job requires constant updating of orders as the prices change. Sign-up for a monthly roundup of the newest crypto products, Sign-up for a monthly roundup of the newest crypto products. What is Uniswap? Stay up to date! As a liquidity provider you just need to add your tokens to the pool you want to join and sit back. The Uniswap Protocol. It’s amazing to me how people come up with this stuff. Over 60% of the total UNI supply was distributed to community members, making it a fairly decentralized token, with only 21.5% given to team members and roughly 17.8% given to investors. Did you like this article on Uniswap? Simulate how different price changes in the assets will affect your ROI: Use this free calculator to simulate how different % changes in the tokens you provide, affect impermanent loss. The Reddit vault is essentially an Ethereum based cryptocurrency wallet that is incorporated into a user’s Reddit account and its purpose is to store new subreddits based community tokens. Thanks for this! Where it makes tradeoffs - decentralization, censorship resistance and security are prioritized. He later received a grant from the Ethereum Foundation to finish the project and launch it to the Ethereum mainnet. Uniswap supports MetaMask, WalletConnect, Coinbase Wallet, Fortmatic and … On traditional order book exchanges, being a market maker is a full time job. In fact, it increases asymptotically. In a nutshell, Uniswap … Uniswap V2, improving the protocol and looking to the future. The idea of Uniswap had originally been laid out by Vitalik Buterin, in a Reddit post but Hayden thought it would be a cool idea to implement it in practice to train his Solidity skills. I’ve been around for a few years but never really looked into the whole defi thing. When a trader makes a purchase of USDC using ETH, they are increasing ETH (as they add ETH to the liquidity pool) and decreasing USDC (as they remove USDC from the liquidity pool). The real USDC-ETH pool on Uniswap for example, currently has more than $400m worth of liquidity. For every trade that is going through the pool, the Uniswap protocol levies a 0.3% fee, which is distributed to all liquidity providers of the pool based on their respective liquidity. We are a multi-faceted team of crypto enthusiasts based in Berlin. The price that you receive is non-negotiable. If you have any questions tag us on Twitter or join us on Telegram! They weren’t able to get any meaningful traction because they were slow and inefficient. As we can see from our table at the top, this moves the price of ETH to 111.11 USDC/ETH. Then on Reddit , the platform has an active group with over 33,000 members. However, most of project still choose uniswap platform to launch their token without interference of centralized platform. Although Uniswap has taken a lot of complexity out for liquidity providers, there is one concept one must understand when providing liquidity. Uniswap is a decentralized exchange founded by Hayden Adams in November, 2018. This was very helpful, thanks for posting. There are various wallets you can use to trade on Uniswap. Uniswap is one of the prominent DeFi protocols in the crypto sphere. Be especially mindful when changing the default setting to the desired percentage as a typo can lead to disastrous outcomes. If you type 10 ETH for instance as an input, Uniswap will tell you the amount of USDC you have to deposit to match it. This premium is called slippage in trading terms and reflected in the Uniswap interface as “price impact”. I was wondering why would anyone pick one over another? Today, Uniswap shows average trading volumes of $450 million dollar per day, oftentimes even outperforming centralized exchanges like Coinbase or Gemini. Users can become liquidity providers for a pool on Uniswap by depositing an equivalent value of each underlying token in return for other tokens in the pool. Below, you will see the key metrics that we have taken into consideration upon coming up with our UNI price analysis and prediction.. Uniswap (UNI) continues to be one of the active cryptocurrencies in the crypto space. The loss only becomes permanent if you withdraw at an unfortunate time. I checked Uniswap on TrustPilot and it has a 3.8 rating with only 2 reviews. If 1% of all tokens in the pool are yours, Uniswap will mint LP tokens which entitle you to 1% of the liquidity + the trading fees generated in that period. Reddit. Users who wish to buy an asset (e.g buy USDC with ETH) submit their order and Uniswap instantly spits out a quote. Let’s assume market makers have collectively funded the ETH/USDC pool with 100,000 USDC and 1,000 ETH. First of all, the real Uniswap pools have much more liquidity than our example pool. Uniswap is Ethereum’s most popular DEX. With Uniswap, you can exchange ERC-20 tokens. Now someone comes and makes a large order of 100 ETH. Let’s see how this pricing algorithm works in practice. Uniswap distributed 400 of its new UNI tokens, a $1,400 value, to all its past users. Uniswap is a decentralized exchange that allows you to buy and sell crypto by swapping ERC20 tokens seamlessly without an exchange and order book. r/UniSwap: Uniswap is a decentralized trading protocol on Ethereum. The problem with order books is that they require extremely fast transaction speeds, which public Blockchains currently don’t offer. These liquidity pools always each contain two tokens: ETH and an Ethereum (ERC-20) token. These tokens represent the share of liquidity you have in the pool. The platform charges users a flat 0.30% fee for every trade. Uniswap liquidity came into existence when Hayden Adams, the great mind behind Uniswap, understood that there needed to be a mechanism that could allow people to trade and make a transaction without permission or trust. Uniswap is a simple, smart-contract-based protocol developed on the Ethereum network that can be used to swap ERC20 tokens.There is no intermediary authority to regulate a transaction, just a combination of a code that executes the transaction, a liquidity pool that provides liquidity, and an Ethereum network that records the transaction.. Now, let us …

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