What is Uniswap?
Description
Uniswap is a decentralized protocol for exchanging cryptocurrencies on Ethereum that uses an automated market making model (AMM) instead of a traditional orderbook. The protocol allows ERC-20 tokens to be exchanged directly and decentralized, without intermediaries, by incentivizing users to provide liquidity through liquidity pools. Users who provide liquidity receive liquidity tokens in return that represent their share in the pool, getting a percentage of the transaction fees generated by trading in the pool.
UNI is the governance token for the Uniswap protocol, which gives holders the right to vote on governance proposals and changes to the protocol.
Technology
Uniswap's technology is based on a few key concepts:
Automated Market Maker (AMM): Uniswap uses an AMM model that allows users to trade tokens in liquidity pools rather than through the traditional orderbook. This model uses a mathematical formula to determine prices based on the quantity of each token in a pool, ensuring that there is always liquidity for any token pair, regardless of order size or market volatility.
Liquidity Pool: Uniswap users can become liquidity providers by depositing token pairs into liquidity pools. In return, they receive liquidity tokens representing their share in the pool. These tokens can be redeemed for the corresponding share of each token in the pool, plus a portion of the accumulated transaction fees.
Decentralized Governance: the UNI token enables decentralized governance of the Uniswap protocol, allowing token holders to vote on proposals that affect the development and policies of the protocol. This includes changes to transaction fees, updates to the protocol, and the allocation of Uniswap's treasury.
On Conio it is possible to buy and sell UNI (Uniswap's native blockchain currency), however, it is not yet possible to withdraw and deposit UNI. On the other hand, you can use the "Convert" function to convert UNI to another asset from among those in the Conio marketplace.
What is Uniswap?
Description
Uniswap is a decentralized protocol for exchanging cryptocurrencies on Ethereum that uses an automated market making model (AMM) instead of a traditional orderbook. The protocol allows ERC-20 tokens to be exchanged directly and decentralized, without intermediaries, by incentivizing users to provide liquidity through liquidity pools. Users who provide liquidity receive liquidity tokens in return that represent their share in the pool, getting a percentage of the transaction fees generated by trading in the pool.
UNI is the governance token for the Uniswap protocol, which gives holders the right to vote on governance proposals and changes to the protocol.
Technology
Uniswap's technology is based on a few key concepts:
Automated Market Maker (AMM): Uniswap uses an AMM model that allows users to trade tokens in liquidity pools rather than through the traditional orderbook. This model uses a mathematical formula to determine prices based on the quantity of each token in a pool, ensuring that there is always liquidity for any token pair, regardless of order size or market volatility.
Liquidity Pool: Uniswap users can become liquidity providers by depositing token pairs into liquidity pools. In return, they receive liquidity tokens representing their share in the pool. These tokens can be redeemed for the corresponding share of each token in the pool, plus a portion of the accumulated transaction fees.
Decentralized Governance: the UNI token enables decentralized governance of the Uniswap protocol, allowing token holders to vote on proposals that affect the development and policies of the protocol. This includes changes to transaction fees, updates to the protocol, and the allocation of Uniswap's treasury.
On Conio it is possible to buy and sell UNI (Uniswap's native blockchain currency), however, it is not yet possible to withdraw and deposit UNI. On the other hand, you can use the "Convert" function to convert UNI to another asset from among those in the Conio marketplace.