Promoting Uniswap | A Unique Smart Token Exchange

in utopian-io •  2 months ago  (edited)

Github Repository: https://github.com/Uniswap

Source

A. Introduction

If you are looking for a smart contract interface to exchange ERC20 tokens, I highly recommend Uniswap. This is a dream come true for anyone wanting to swap ERC20 tokens easily. You can also do exchanges of any ERC20 without involving a middle man.

I have another good news: For people who have an Ethereum address, you can now earn by contributing to the exchange liquidity with Uniswap.

Today, I want to do a DApp Review on a featured Uniswap DApp that I like very much and have been having fun playing around with it in the last few weeks.


B. Uniswap at State of the DApp

Uniswap is one of the decentralized Exchange DApp listed on the State of the DApps platform.

Presently, among the listing of many DApps the ranking of Uniswap is at #46 on the State of the DApps

In the Exchange Category, it ranks as the 6th Top DApps of 2019 in the exchange category.

The following graph shows their daily, weekly and monthly activities in the past few months.

  • Every day, there is an average of 429 transactions taking place.

  • Every month, there are about 19K transactions equalling to about 60K volume of exchange in Ethereum.

As you can see, this is quite an active site.


C. What is Uniswap?

Uniswap is an open-sourced protocol for decentralized token exchange hosted on the Ethereum blockchain in the form of 2 smart contracts. This means that you can quickly exchange between ETH to an ERC20, as well as swapping ERC20 tokens.

I also use Uniswap to earn fees by contributing to liquidity pools for any ERC20 token. In this way, I gain a further commission in the form of an exchange fee for contributing to liquidity.


D. How To Get Started

1. Go to the Uniswap Website

https://uniswap.io/

Click on Swap Tokens

2. Uniswap Exchange Opens Up

You need to have MetaMask installed and then go to this page:

  • The MetaMask plugin is needed to interact with your Ethereum addresses. Make sure you are logged into MetaMask or any of the Web3 Wallet.

  • Key in the password and you can start trading ETH for tokens here.

3. Click Pool

  • This will take you to the interface for adding liquidity.

  • You can also remove liquidity here too.

4. Add Liquidity

  • Tab on "Add Liquidity" above the Deposit field.

  • Uniswap shows my balance of ETH and the ERC20 token.

  • At the bottom, it shows the exchange rate and my share of the liquidity pool.

5. Select Token Button

  • Click on "Select a token" button.

  • Search for FT by entering its smart contract address.

  • Enter the amount of Ethereum

6. Click Add Liquidity Button

  • Click the Add Liquidity button.
  • Submit the MetaMask transaction.
  • The transaction will confirm on the Ethereum blockchain with my updated ETH and Dai balances!

That's it!

I can now see my stake in the pool and the trading pair in the overall liquidity pool.


E. Components of Uniswap

Uniswap

1. Two Smart Contracts

Uniswap Exchange

Uniswap is made up of two smart ETH - ERC20 exchange contracts: Factory contract and Exchange Contract.

2. Factory Contract

The Factory smart contract contains a public exchange registry!

Here, I can create exchange contracts for any ERC20 token.

You can look up all token and exchange addresses that have been added to the system.


3. Exchange Contract

One Exchange contract is used per ERC20 token. Each exchange holds reserves of both ETH and its associated ERC20 token.

4. Available Tokens

Each contract holds an ETH reserve and a reserve of the corresponding ERC20 Token.

Uniswap allows users:

  • exchange ERC20 tokens for Ethereum
  • exchange Ethereum for ERC20 tokens
  • exchange ERC20 tokens for other ERC20 tokens

5. Liquidity Providers

Liquidity providers can contribute liquidity to the reserves. You can deposit an equivalent value of ETH and an ERC20 token into the associated exchange contract.

The exchange fee is set by the first liquidity provider. If the price does not match up to the market price, then arbitrage traders can adjust the prices to the correct value.

It is possible to earn a proportional share of 0.3% fee on any trades made in your contribution.

On this first week of May, Uniswap crossed $10M in total liquidity!!!

These are the top ten liquidity pools by liquidity:

$MKR - $3.5M
$DAI - $2.5M
$BAT- $540k
$TUSD - $485k
$WETH - $340k
$USDC - $325k
$REP - $225k
$XCHF - $200k
$SNX - $185k
$DGX - $120k


F. What I like about Uniswap

I like Uniswap in that the exchange is done without a middle man. All you need is your Ethereum address.

One main reason I use Uniswap is that it aims to make the market price more stable. In that way, people cannot manipulate the price to their advantage.

An advantage of using Uniswap is that it has a unique way of incentivizing users to contribute any amount of liquidity into the pool. Any amount will do, no matter how small the liquidity is.


G. How I think Uniswap can improve

Right now, Uniswap is still in its beta version, therefore it has its limitations. It is still in the experimental stage for early users.

I believe Uniswap has taken a significant step in enabling a digital decentralized exchange that allows people to exchange through the entire ERC20 catalogue with ease.


H. How does it compare to other exchanges

Uniswap is different from the traditional exchange models. Other decentralized exchange services like Ox Relayers and Bancor services are quite slow going.

Uniswap also allows users to specify a maximum or minimum price when placing an order. You don't find this in the other exchanges in most of the DEX projects.

Conclusion - Star Rating

I give this DApp a 4.5/5 Rating.

It is fun to use, fast and convenient to be a liquidity provider.

Thank you for your attention,
Rosa
@rosatravels



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Hello, Rosa!

Thank you for taking the time to provide another comprehensive and very informative review. This time you decided to promote Uniswap, and I appreciate the information you have provided us with.

In terms of content, I like all the information provided. The post includes valuable information about the project itself, and even contains insights about your personal knowledge and views. This is the kind of editorial content we like to see in blog posts, and it goes without saying that I appreciate the effort you put into your work.

In conclusion, this is another detailed and extensive review from you, and I appreciate your commitment to quality. I look forward to reading your next one.

Your contribution has been evaluated according to Utopian policies and guidelines, as well as a predefined set of questions pertaining to the category.

To view those questions and the relevant answers related to your post, click here.


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Thank you for your review, @lordneroo! Keep up the good work!

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Hey I love how detailed you are with your presentation here. I seldom meet women who are as interested or familiar with crypto, so you are a rare anomaly in my opinion. 90% of crypto enthusiasts probably are men.

I've also enjoyed using Uniswap! I find that their model suits the slower reaction times of DEXs... the normal order book model moves too quickly for the DEX to keep up, which makes it difficult to place orders.