A Simple Introduction to Uniswap

What is Uniswap (UNI)?

  • Decentralized permissionless exchange
  • Allows trading of ERC-20 tokens (Ethereum based tokens)
  • Tradition exchanges are centralized (owned by 1 company), regulated and requires user deposits
  • Decentralized Exchanges (DEX) part of the DeFi ecosystem
  • Uses a set of smart contracts (i.e. automated rules) that are executed by independent computers
  • Open to everyone, no need for account or identification, trade directly from crypto wallets
  • Uniswap uses AMM called Constant Product Market Maker Model (X*Y = K)
  • For example: amount of ETH available * amount of DAI available = constant

Uni Token

  • Used as a governance token
  • Allows Uniswap users to decide on future development
  • Idea is to eventually phase out the development teams involvement and make dApp completely decentralized

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Ricky Young

My belief is that financial freedom can only be achieved through a combination of smart investing and passive income. This is my journey to achieve financial freedom.

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