Decentralized Exchange

Uniswap Exchange Review – A Detailed Guide to Token Swap

Overview

Legal NameUniswap Exchange
HeadquartersBrooklyn, New York, USA
CEOHayden Adams
Year Founded2012
Exchange TypeDecentralized
Trading FeesMaker: 0.30%/ Taker: 0.30%
Deposit MethodsCryptocurrency
Supported Cryptos100+ cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and more
FiatNo
Customer ServiceEmail, Phone
Trading OptionsSpot Trading, Margin Trading

For years, centralised exchanges have been the center of the crypto-currency industry. They deliver high volumes of trading, and good liquidity. However, in the form of trustless protocols, there’s a parallel world being created. To carry out trading, decentralised exchanges (DEX) need no middlemen or custodians. 

It has been a challenge to create DEXes that compete meaningfully with their centralised counterparts due to the inherent limitations of blockchain technology. 

Uniswap is an innovative exchange protocol built on Ethereum. It allows anyone with an Ethereum wallet to exchange tokens without the involvement of any central party. Let us look into this Uniswap Exchange review in detail now.

What is Uniswap?

Uniswap is one of the popular exchanges which was founded by Hayden Adams in the year 2012. Uniswap is a protocol on the Ethereum blockchain for the automatic exchange of ERC-20 tokens. It is clear, anonymous, and easy to use. There is no need for you to register an account and do KYC. 

All you need to do is open the website and add it to your wallet to get started. Traditional token swaps require liquidity creation by buyers and sellers, while Uniswap automatically creates markets and solves the liquidity issue.

Uniswap Features

1) Anonymous: To use Uniswap, you do not have to perform KYC. Instead, trading is done directly from your wallet, so the only identification involved is your public wallet address.

2) Security: Since Uniswap is non-custodial, it is as safe as the Ethereum blockchain itself, meaning the protocol does not carry funds. Several teams, including those who checked the MakerDAO contracts, have audited Uniswap’s smart contracts.

3) New Tokens: Anyone can create and pair an ERC20 token with ETH to create liquidity for the new pool. This means Uniswap gives you instant trading access to new tokens than anywhere else.

4) Low fees: A nominal 0.3 % charge per trade is all it costs to use Uniswap. However, centralised exchanges tend to charge 0.5 % or more per trade.

5) Trustless: Unlike centralised exchanges, when you trade using Uniswap, you keep your private keys. You are the custodian of your tokens and directly exchange them with the liquidity pools.

Uniswap Fees and Limits

Uniswap Exchange only charges a flat fee of 0.30% per trade. This is much cheaper than most decentralised exchanges.

These are added to the liquidity pool by default, but liquidity providers are free to redeem them at any time. The fees are allocated according to the pool ‘s share of each liquidity provider.

Uniswap Supported Currencies

The Uniswap exchange supports 100+ cryptocurrencies. Some of the major ones can be listed as below:

  • Bitcoin
  • Bitcoin Cash
  • Litecoin
  • Ethereum
  • Ripple
  • Dash
  • Monero
  • Tether
  • Bitcoin Gold

Uniswap Mobile App

Uniswap allows you to connect your mobile wallet. You can just go to your browser on Uniswap and follow the same steps as you would on your PC. This causes the same wallet to appear on your PC and your cell phone. Thus it helps to trade the cryptocurrencies on the go.

How to use Uniswap?

  1. Step 1:

    On Uniswap, click “Launch App”. Go to the Uniswap interface.

  2. Step 2:

    Then click “Connect to a wallet”. You can use MetaMask, Trust Wallet, or any other supported Ethereum wallet.

  3. Step 3:

    A popup window would appear showing your account, choose the wallet then click “Next” and “Connect”.

How to add tokens on Uniswap?

  1. Step 1:

    First, navigate to the Uniswap exchange.

  2. Step 2:

    Next, click on the “Select a token” button.

  3. Step 4:

    In the “Search name or paste address” box, paste in the contract address of the ERC-20 token you would like to list.

How to swap tokens on Uniswap?

  1. Step 1:

    On the Swap tab, choose the amount of ERC-20 tokens you want to swap.

  2. Step 2:

    Choose the token you want to swap to by clicking the down arrow under “To”.

  3. Step 3:

    A list will appear and you can choose the token you want to swap to, or if your token is not on the list you can paste the address of the token.

  4. Step 4:

    Uniswap will display an estimate of how many tokens you would receive after the swap. To confirm, click “Swap”.

  5. Step 5:

    If you need to adjust slippage tolerance and transaction time, click the “setting” button on the up-right corner.

Uniswap Pros and Cons

Pros

  • It keeps your anonymity, as it does not require KYC and registration.
  • You have control over your tokens.
  • Users can trade flash swaps on Uniswap
  • Uniswap shares transaction fees with liquidity providers

Cons

  • It only supports ECR-20 tokens
  • The prevalence of scam tokens caused by open listing
  • Flash swaps can lead to cyber attacks

Conclusion

Uniswap has a range of benefits for small-traders as compared to other decentralised exchanges. In particular, there are no listing fees for Uniswap, no native tokens needed and some of the cheapest gas costs of any DEX.

On GitHub, the project is open-source and implicitly permissionless, which means that any person can build any ERC market. Uniswap is one of the most popular DEXs at present and has rapidly become the most popular platform for trading DeFi tokens.

Recent Updates

On Sep 17, 2020, Uniswap announced that UNI, the Uniswap Protocol governance token, was live now on Ethereum mainnet.

On Aug  27, 2020, Uniswap announced the Token Lists, a new standard for creating lists of ERC20 tokens. This is a community initiative to improve discoverability and trust in ERC20 token lists.

FAQ’s

  1. How does Uniswap work?

    Rather than specifying what price to buy or sell at, users merely select an input and output token while Uniswap provides a market rate.

  2. What is the difference between Uniswap version 1 and 2?

    Uniswap has launched an improved version of their Exchange, referred to as version 2. The main difference between these versions is that version 2 offers ERC-20 to ERC-20 token pools, native price oracles and flash swaps.

  3. How are the prices determined in uniswap?

    Uniswap specifically follows a model called “Constant Product Market Maker,” or CPMM. This simply means that Uniswap relies on the equation x*y=k to create a price spectrum for token pairs per the available liquidity of these pairs.

  4. What are the Risks of Using Uniswap?

    Uniswap also pose some of the risks such as fake smart contracts, High gas fees and phishing attacks

  5. Is there Uniswap mobile app available?

    Yes, Uniswap provides a native mobile app which can be used for trading on the go.

Uniswap Ratings

Reviewed By Nidhi Kolhapur

Easy to use
Trading
Fees and Limits
Registration

Summary

For years, centralised exchanges have been the center of the crypto-currency industry. They deliver high volumes of trading, and good liquidity.

4.1
uniswap - 8.2

8.2

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Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

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