Uniswap is a Decentralized Exchange
Uniswap is a decentralised exchange created by Hayden Adams. The decentralized exchange is based on a blockchain technology. It uses an automated market-maker system to adjust the price of asset pairs based on supply and demand. It uses a mathematical equation to determine how much a coin is worth based on the number of coins in its pool. Uniswap also utilizes a blockchain-based smart contract to ensure that the price of a coin varies depending on how many coins are in the pool.
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It Uses Smart Contracts To Connect With Metamask
Uniswap utilizes smart contracts with Metamask to simplify its trading platform. Users pair up and exchange one ERC-20 token for another, then exchange the two for the same value. This is done through a mathematical equation. To compute the price of each token, Uniswap uses the formula x*y=k, where K is a constant. The equation is simple, but it allows users to trade tokens without ever stepping out of their comfort zone.
It charges a fee of 0.3%
Uniswap has three fee tiers based on the willingness of liquidity providers to charge fees. Fees for stablecoin pairs may be 0.05%, while fees for newer tokens can be as high as 1%. The fees are divided proportionally among existing liquidity providers. SushiSwap, for example, charges a flat fee of 0.3% to all business teams. Dish token holders receive 0.05% of the fee, and liquidity providers get the other 0.25%.
Also Read:- How To Buy Crypto on Uniswap
It is available on Metamask
You can now use Uniswap to Buy ETH on MetaMask, the popular cryptocurrency exchange. There are three ways to buy ETH on MetaMask: connect your debit or credit card, specify the amount of ETH you want to buy, and select "Browser" from the menu. Type in "Uniswap" into the search bar and you'll see a list of cryptocurrency exchanges offering Uniswap.
It is user-friendly on mobile
While Uniswap is user-friendly and convenient to use on a desktop, it can be cumbersome on a mobile device. Unlike other decentralized crypto exchanges, Uniswap requires you to purchase cryptocurrencies and transfer them to a wallet that links to the Uniswap website. This method avoids the hassle of having to input your personal information and bank account number.