Crypto Corner: A profile on UNI

This week, we’re looking into the Uniswap token (UNI) and the protocol it powers, Uniswap.

So, what are they all about?

What’s it all about?

Uniswap is a decentralised crypto trading protocol, designed to facilitate the easy exchange of ERC-20 tokens.

How is it done? Tokens are exchanged through liquidity pools that are defined by smart contracts. A basic liquidity pool contains two tokens of equal value.

Each pool keeps track of its liquidity and automatically rebalances its reserves whenever a trade is made. This function is what makes Uniswap an ‘automated liquidity protocol’ and is the reason it doesn’t require a central facilitator.

When new ERC-20 tokens are provided to liquidity pools, the contributor (known as the liquidity provider or LP) receives a “pool token”, which represents their share of the pool’s total assets, plus their share of the pool’s 0.3% trading fee.

But where does the Uniswap token come in? UNI is the network’s governance token, meaning anyone who holds it is entitled to vote on how the protocol is run.

Who came up with the idea?

Uniswap was founded in November 2018 by Hayden Adams, a former mechanical engineer at Siemens. Version 2 launched in May 2020, followed by version 3 in May 2021.

Its governance token, UNI, was launched in September 2020.

What can you do with UNI?

You can buy, HODL, exchange or spend UNI with Wirex, just like any other currency! Open your UNI account in the app today to get started.

Any fun facts?

First things first, Uniswap v3 is currently the largest decentralised exchange (DEX) on the market, taking a huge 22.7% share. V2 is not far behind, either, coming in at fourth place!

Another interesting Uniswap fact is about its founder, Hayden Adams. Amazingly, he started Uniswap without any prior programming knowledge, teaching himself to write smart contracts while working on the very first Uniswap Protocol. Now that’s impressive.

You can check out his own account of Uniswap’s humble beginnings here

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Great information :heart::hugs:

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:fire:

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‘’ Amazingly, he started Uniswap without any prior programming knowledge’’ love hearing success stories like this!

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