Originated in 2018, Uniswap is an Ethereum-based decentralized exchange protocol. It is an automatic liquidity protocol. On this exchange platform, no order book or centralized component is required. Uniswap allows users to trade without an intermediary through intelligent contracts, reaching an outstanding level of decentralization and endurance to limitations.
The system depends on liquidity providers who generate liquidity pools for the Uniswap platform since users can trade their cryptocurrencies seamlessly within virtually any ERC-20 token.
Uniswap, Why Should You Invest in this Encouraging Crypto Currency 2021?
Uniswap lastly fits into an essential element of the cryptocurrency community: decentralization. Platforms like Binance and Coinbase are centralized exchanges that keep your cryptocurrencies. What gives them some control over funds while the cryptocurrency industry is meant to be fully decentralized.
Investor interest in this platform has raised the price of UNI. As a result, it entered the best ten in terms of market capitalization.
Advantages of Uniswap
This innovative project has various gains for cryptocurrency traders.
An excellent alternative to centralized platforms Solves liquidity issues of centralized platforms Without KYC (identity verification) Complete control over your funds Low transaction fees
Disadvantages of Uniswap
Any liquidity providers might place fraudulent cryptocurrencies. Therefore, only ERC-20 tokens are supported.