The Steemit Crypto Academy Week 4: Homework task4 Explain in full a project built on the Ethereum Blockchain
- Introduction
- what is Uniswap?
- when was Uniswap created?
- How the Uniswap Ethereum Project works
- How Uniswap tokens are produced
- How to trade on Uniswap
- Conclusion
Hello friends,
Today I'm glad to discuss with you my homework task4 on the topic "Explain in full a project built on ethereum blockchain" in this topic I will specifically discuss about Uniswap as a project built on the ethereum blockchain. Firstly let me use this opportunity in thanking professor @gbenga for the wonderful lecture given so far. May you be blessed.
Uniswap is one of the decentralized exchange project that is built on ethereum blockchain. It perform an automated transactions between ERC20 tokens through the use of smart contracts. Uniswap is built to allows traders to trade tokens without the support of intermediaries, with a high level of decentralization.
Uniswap project was created in 2018 by Hayden Adams, who was motivated from a post he read from the co-founder of Ethereum Vitalik Beuterin.
Uniswap works together with a strong design known as Constant Product Market Maker (PMM) which is also a diverse model known as Automated Market Marker (AMM).
The AMM are the smart contracts that store liquidity pools which traders can trade against. The liquidity pools enter a market by deposit an amount that is equivalent value of 2 tokens. It usually an ERC20 tokens which are made up of Stablecoins. Let's just go straight to how you can make a trade.
For example I @josepha buys 1 ETH worth 381.595 USDT using the ETH/USDT liquidity pool. This means that I have increases the USDT amount of the pool and decreases the ETH amount. This is because the ETH price goes up.
The Uniswap tokens are produced when there is new ETH/ERC20 tokens contributed to the liquidity pool, the holder receives a token known as "pool token". The pool tokens are generated anytime funds are deposited into the pool, it can be exchanged and withdraw to another Dapps freely. Every pool token that is made available respresent a user's share it the total pools and a remaining share of the pool's 40% trading fee.
It's very easy and straight forward to make a trade on Uniswap. Although there are two website that is commonly used the https://app.uniswap.org or https://uniswap.exchange. for the purpose of this homework let's used the Uniswap.exchange
Step 1. Go to the Uniswap exchange interface.
Step 2. Connect your wallet at the top tight. It can be Coinbase, MetaMask, Trust Wallet, or any other supported Ethereum wallet.
Step 3. On the trading interface select the token you’d like to exchange from.
Step 4. Select your desire token you’d like to exchange to.
Step 5. On the order menu click on the Swap bottom.
Step 6. Wait for the transaction to be preview in the window that would pop up.
Step 7. Finally click to confirm the transaction.
Uniswap is an open source exchange protocol that is built on Ethereum that allow anybody that has and ethereum wallet to swap tokens without third party. I hope this homework post is as simple as ABCD to your understanding.
Thank You...........
Image Reference:
Staeoftgedapps
Thecryptbasic
Hey @josepha. I must commend your ability to read and rewrite in different words this post, At least it can't be said that you plagiarized but then, it is visible that you didn't get all this information off heart so I expected a reference. Anyways, I can tell where your content came from:
https://academy.binance.com/en/articles/what-is-uniswap-and-how-does-it-work.
There are a few things you should be able to work on, like;
You could have tried this out yourself, it is fun experimenting with things yourself as you write about them firsthand.
Please do share more on this such as the Uniswap Governance and how the UNI token is valuable in the ecosystem
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