What do you mean by UNI?
Token Thursdays: Episode 7
Welcome to Token Thursdays! A weekly breakdown of the most popular cryptocurrencies in the blockchain world. This week we tackle a popular DEX token: UNI.
What is UNISWAP?
Uniswap is a DEX protocol project consisting of a set of smart contracts running on the Ethereum blockchain. In technical terms, it is an automated liquidity protocol that is powered by a constant product formula, which is Uniswap’s automated market-making algorithm. The Uniswap blockchain is open source, meaning that anyone can view and contribute to the blockchain’s code. What makes Uniswap interesting is that, unlike entities that maintain a central order book for buying & selling, it uses a collection of liquidity pools.
Simply put, liquidity pools are digital piles/reserves of cryptocurrency locked in a smart contract. This results in creating liquidity for faster & permissionless transactions in Decentralized Finance (DeFi). With its liquidity pool structure, traders on the DEX can use the user-funded token reserves
Users can swap tokens, contribute tokens to a pool and earn fees, or list a token on Uniswap. Since Uniswap is built on Ethereum, almost any ERC-20 token is exchangeable using Uniswap. To actively trade on Uniswap, users must have an Ethereum-based digital wallet and have Ether to pay the fees incurred on the DEX. It is also interesting to note that there are no listing fees for a token to be available to trade on Uniswap.
The UNI Token
UNI is the native token of Uniswap DEX, it was launched on September 1 2020 with the purpose of making the protocol owned and operated by its users, who will, in turn, help it to grow into a self-sustainable model.
- UNI is a Governance token that allows UNI HODLers to govern the protocol and vote on proposals that might further Uniswap’s development and improve its ecosystem.
- The key reward for maintaining liquidity pools on the DEX
- Staking UNI tokens in liquidity pools to earn rewards
Governance with UNI HODLers is distributed in proportion to their real-time balances of UNI tokens. Additionally, in exchange for maintaining liquidity in the pools, providers are rewarded with a portion of the trading fees, along with newly minted UNI cryptocurrency.
Users are also able to earn UNI tokens by staking tokens in Uniswap’s liquidity pools. Staking tokens in order to reap rewards from liquidity pools is commonly known as yield farming or liquidity mining.
Where to buy UNI?
DIFX is a centralized cross-asset crypto exchange that allows users to trade between multiple asset classes that include indices, forex, crypto, metals, and commodities, just to name a few. The DIFX fully-insured crypto wallet comes from a partnership with Fireblocks, one of the leading crypto custodians in the world.
The Nomination Program is another unique feature of DIFX that allows users to manage the future of their crypto assets by passing them on to their families and loved ones. Recently, the company unveiled its Futures trading platform in an attempt to further improve financial inclusion and freedom through innovations offered by blockchain technology.
DIFX was presented with the “Most Trusted Cross-Asset Trading Platform — 2022” by the Crypto Expo Dubai and “Best New Trading Platform Award” at the E-Business Awards 2021 by Entrepreneur Middle East and the Forex Expo 2021