What Is Uniswap (UNI)?

What Is Uniswap (UNI)?
Uniswap is a decentralized trading protocol that facilitates automated trading of DeFi tokens. Launched in November 2018, it gained significant popularity recently due to the rise of DeFi and increased token trading. Uniswap aims to automate token trading and make it accessible to anyone holding tokens, enhancing trading efficiency compared to traditional exchanges. It addresses liquidity challenges through automated solutions, improving on the shortcomings of earlier decentralized exchanges. In September 2020, Uniswap launched its governance token, UNI, allowing users both profitability and a say in the protocol’s future.
Who Are the Founders of Uniswap?
Uniswap was created by Ethereum developer Hayden Adams, inspired by a blog post from Ethereum creator Vitalik Buterin. Initially called Unipeg, Adams' project was influenced by his experiences with various projects and discussions with Buterin. His focus on Ethereum began in 2017, encouraged by a friend's suggestion.
What Makes Uniswap Unique?
Uniswap's primary goal is to enhance liquidity in the DeFi space. As a leading AMM, it operates with a specific formula (X x Y = K) for automated exchanges. Unlike other decentralized exchanges, Uniswap addresses previous liquidity problems by automating market-making, which reduces risks and costs for users. It allows anyone to create liquidity pools for any token pair. The UNI token was introduced to ensure the protocol's community ownership and sustainability.
Uniswap V2 was launched in November 2018, introducing features like ERC-20 pair trading and flash swaps. The latest version, V3, launched in May 2021, offers improved capital efficiency and execution for traders, achieving an all-time high price of $44.97 before its mainnet launch.
How Many Uniswap (UNI) Coins Are There In Circulation?
Uniswap's governance token, UNI, has a total supply of 1 billion units, distributed over four years with a subsequent annual inflation rate of 2%. The distribution includes 60% for community members, 21.51% for team members, 17.8% for investors, and 0.69% for advisors. Users who engaged with Uniswap before September 2020 can claim a portion of UNI. The token empowers holders to participate in the governance of the protocol.
How Is the Uniswap Network Secured?
Uniswap operates as a decentralized trading protocol, with UNI as its governance token based on the Ethereum network. As an ERC-20 token, it follows specific rules that ensure security, although network congestion can lead to high transaction fees and delays. Security risks associated with smart contracts have led to vulnerabilities in DeFi.
Where Can You Buy Uniswap (UNI)?
The UNI token can be traded on major exchanges like Binance, Huobi, and Coinbase Pro, as well as on Uniswap's own protocol (V2 and V3).
Uniswap DAO
The Uniswap DAO consists of over 310,000 members who vote on governance matters using UNI tokens. Any holder can propose changes, but it requires significant support to advance through different voting phases. Uniswap was a leading DEX in trading volume and the top DAO in treasury holdings but is currently ranked second to BitDAO.
Uniswap Acquires NFT Aggregator Genie
Uniswap has acquired NFT aggregator Genie to enhance its offerings, aiming to integrate NFTs into its platform. Genie allows users to buy and sell NFTs across multiple marketplaces in a single transaction, reducing gas fees. An airdrop of USDC is planned for early Genie users, while the Genie platform will remain operational until Uniswap’s NFT features are launched. This acquisition signals Uniswap's commitment to expanding into the NFT space, building on previous initiatives like the Unisocks collection.
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