Uniswap has turned out to be one of the most interesting projects based on the Ethereum cryptocurrency. This platform is a protocol for only decentralized exchange of crypto coins or tokens and at the same time very different from the usual ones seen in this world. Check out bitcoin-loophole.live for more in-depth information about bitcoin trading.
Uniswap consists of smart contracts positioned on the network of Ethereum which shows the entirety of the procedure occurring on the chain. In this platform, no token, no charges, or no centralization is given to any of the founders of the platform. The system needs people to get used to it before using it. Once you are familiar with the platform, it can be a blessing for trading purposes as it brings you, people, some nifty benefits.
Uniswap or PancakeSwap: Which Is Better?
Uniswap and PancakeSwap, both are known as decentralized exchange platforms. These platforms enable the trading of crypto assets. Other than this, both the tokens, UNI, and CAKE offer a variety of incentives and prizes to their users to provide liquidity.
PancakeSwap and Uniswap, both work on separate and distinct blockchain platforms. The Uniswap platform uses the Ethereum blockchain while on the other hand, PancakeSwap is based on the Binance Smart Chain. The Uniswap platform supports the swapping of Ethereum and other Ethereum-compatible coins or tokens that are linked to the ERC-20 standard token. In contrast to it, PancakeSwap allows the exchange of Binance and Binance-compatible tokens that are suitable with Binance’s BEP-20 standard token.
The UNI Token of Uniswap
Just like all other cryptocurrencies, Uniswap also has a native token called UNI. UNI is its governance token or coin. These tokens give holders the authority to cast their votes on new alterations and developments regarding the network that also include the way the tokens need to be minted and should be distributed all among the community and users as well as the changes made in the stricture of fees.
This UNI token was fundamentally developed in the year 2020 September to prevent users from going over to the rival Decentralized Exchange (DEX) SushiSwap. Before the launch of Uniswap, SushiSwap which is a fork of Uniswap incentivized many users from Uniswap to enable SushiSwap to rearrange their funds to the new platform by giving them prizes with SUSHI tokens.
These tokens were quite different than the previous ones and offered the users regulatory rights over the latest protocol and a balanced amount of all transaction charges (gas charges) paid to the platform.
The platform of Uniswap responded by developing almost 1 billion UNI tokens and decided to circulate 150 million from them to those who never had the experience of using these platforms. People received 400 UNI tokens each which at that time were valued more than 1,000 dollars.
Pros and Cons of Uniswap Crypto Exchange Platform:
The exchange platforms like Uniswap, PancakeSwap, Bitcoin Trading Software and others have made trading, selling, and purchasing cryptocurrency assets quite simple and convenient. Below are some pros and cons of the Uniswap exchange platform.
There is a vast list of pros of Uniswap, but here we have listed the major and most significant pros of Uniswap.
- Facilitates the decentralized exchange (DEX) of a variety of crypto assets.
- The smart contracts Uniswap utilize enables easy trading of assets that are comparatively inexpensive and more resourceful.
- The users of the Uniswap platform have the opportunity to earn UNI tokens by holding on to their tokens by not selling or trading them.
- Due to its decentralized nature, the Uniswap platform is accessible to everyone and anyone.
Here we have shortlisted some of the most prominent cons of the Uniswap decentralized exchange (DEX) platform.
- The platform of Uniswap only supports the swapping of Ethereum-based or Ethereum-compatible digital currencies.
- This platform operates on the Proof of Work mechanism which consumes a high amount of energy and is non-environment friendly.
- To use the Uniswap platform, the users must have Ether (ETH) to make the payments for transactions.
- As this Uniswap platform is decentralized, it requires having a well-matched and self-hosted wallet.
Other than these pros and cons there is a list of advantages and disadvantages of Uniswap DEX.
Uniswap, another decentralized exchange platform is revolutionizing the trade, sale, and purchase in the crypto world. As this platform has brought solutions to many existing issues, it is still not the perfect platform and has some major drawbacks too.