Uniswap Exchange Review – Everything you need to know before using Uniswap

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Introduction

It is becoming increasingly difficult to trust centralized exchanges ever since FTX’s collapse. With so much scrutiny and tiring KYCs, users are slowly turning to decentralized (DEX) exchanges. In this review, we will learn the pros, cons, and overall rating of the DEX – Uniswap.

Some of the best features of DEX are that it requires no intermediaries or controlling entities to manage its operation, there is no requirement for KYC, and literally no censorship. You can remain anonymous yet get the full investment benefits of your cryptocurrencies. Let us see what is so special about Uniswap

Overview

Official Website	https://uniswap.org/
Founding Year	2018
Head Quarters	New York
Trading Volume	$902 Million
Trading Options	Swapping Tokens
Trading fees	0.30%
Total listed Coins	100+
Trading Pairs	1000+
Supported fiat	Fiat currency is not supported
Withdraw options	ERC, TRC, BEP2, & BEP20
Bank withdrawal Supported	No
Withdraw fees	Depends on cryptocurrency
Deposit methods	Fiat currency is not supported
Restricted countries	10
Native Token	Uniswap Token (UNI)
Mobile app	Uniswap Wallet available on Apple App Store only
Support Channel	https://support.uniswap.org/hc/en-us
Coinpedia rating	8/10
Security rating	8/10
User Interface	Need a learning curve
Ease to set up	Easy
App store Rating	4.8
Play store Rating	Play store app is not available
Security	Secured
Hacking attempts/Hacks	Never been Hacked
KYC verification duration	No KYC verification required
Regulation & Compliance	Compliant
Liquidity	Highly Liquid
Proof Of Reserve	No proof of Reserves required for DEX

What is Uniswap?

Uniswap is a decentralized exchange founded in 2012 by Hayden Adams. It is built on the Ethereum blockchain that allows users to exchange Ethereum chain-based tokens. It gained widespread adoption due to its simplicity and user-friendliness.

Uniswap uses a unique trading model called “automated market making,” which allows users to trade tokens without the need for a centralized order book. Instead, Uniswap maintains a constantly updated pool of liquidity, which is provided by liquidity providers who earn a fee for their contribution. When a user wants to trade a token, the Uniswap smart contract automatically executes the trade using the liquidity pool, based on predetermined algorithmic pricing rules.

In addition to its decentralized exchange function, Uniswap has also become a popular platform for launching new tokens through a process called an “initial liquidity offering” (ILO). This allows projects to raise funds and create a market for their tokens without the need for a traditional initial coin offering (ICO).

Features

• Automated market-making: Uniswap uses a unique trading model that allows users to trade tokens without the need for a centralized order book.
• Wide variety of tokens: Uniswap supports a large number of Ethereum-based tokens, including ERC-20 and ERC-721 tokens.
• Easy to use: Uniswap has a simple and user-friendly interface, making it accessible to users of all experience levels.
• Decentralized: Uniswap is a decentralized exchange, meaning it is not controlled by a central authority and users retain control of their assets at all times.
• Open source: Uniswap’s code is open source, which allows anyone to audit and verify its functionality.
• Initial liquidity offerings (ILOs): Uniswap allows projects to raise funds and create a market for their tokens through ILOs.
• Reasonable fees: Uniswap charges relatively nominal fees compared to other decentralized exchanges, which makes it attractive to users.
• High liquidity: Uniswap has a large and growing liquidity pool, which allows users to trade even large amounts of tokens without significantly affecting the market price
• Liquidity Pool: Users can provide liquidity to the pool by depositing their cryptocurrencies into the pool and in turn, they will receive passive income

Cryptocurrencies supported on Uniswap

There are 100 cryptocurrencies available on Uniswap. Some of the popular cryptocurrencies are

• USD Coin
• Polygon Matic
• Wrapped Ether
• Tether 
• Dai 
• Wrapped BTC
• Ethereum
• Apecoin
• Uniswap Token
• Rocket Pool Protocol

How to swap tokens on Uniswap?

In order to use Uniswap, you need to connect any of the wallets like Metamask Wallet, Coinbase Wallet, or Wallet Connect (a Web3 wallet that is compatible with Ethereum Blockchain). Now let us learn how to swap tokens on Uniswap

1. Go to the Uniswap website and click ‘Swap’
2. Choose the Tokens you want to swap from the ‘to’ and ‘from’ fields.
3. Connect the web3 wallet
4. Check the current market price of the tokens and make necessary adjustments to see the desired final price
5. Review the details and confirm the transaction
6. You will receive the tokens in your wallet once the transaction is complete and the transaction will be recorded in the Ethereum blockchain
7. Make sure that you have enough ETH in your wallet for the gas fee as it will be paid to the miners. 

Exchange fees and supporting payments

Uniswap charges fees for trades that are executed on its platform. These fees are used to compensate liquidity providers for their contribution to the liquidity pool, as well as to cover the costs of operating the Uniswap platform. The gas fee is 0.3% which is roughly around $10.23 for ETH/USD pair. 

The fees on Uniswap are based on a “slippage” model, which means that the fees are determined by the amount of liquidity that is required to fill a trade. When a trade is executed on Uniswap, the smart contract automatically calculates the amount of liquidity that is needed to fill the trade at the current market price. The fee for the trade is then based on the amount of slippage, or price difference, between the current market price and the final execution price of the trade.

In general, Uniswap’s fees are relatively low compared to other decentralized exchanges. The exact fee for a trade will depend on the specific trade and market conditions at the time the trade is executed.

There are no hard limits on the size of trades that can be executed on Uniswap. However, it’s worth noting that the liquidity of certain markets may be limited, which could affect the ability to execute large trades without affecting the market price.

Customer care

As a decentralized exchange, Uniswap does not have a traditional customer service team in the way that centralized exchanges do. Instead, it relies on its community of users and developers to provide support and assistance.

Uniswap has an active community of users on social media platforms such as Twitter and Telegram, where users can ask for help or share their experiences with the platform. In addition, Uniswap has a comprehensive documentation page on its website that provides detailed information on how to use the platform and troubleshoot common issues.

If you encounter a problem with Uniswap or have a question about how the platform works, you can try reaching out to the Uniswap community for assistance. It’s also a good idea to check the documentation page to see if your issue has already been addressed.

It’s worth noting that, as a decentralized exchange, Uniswap does not have the same level of customer support as centralized exchanges. If you are a beginner or are not comfortable with self-service support, you may want to consider using a centralized exchange that has a dedicated customer service team.

Recent Updates

13 Apr 2023 – The Uniswap wallet is now available on the Apple App Store, while the availability of the application on the Google Play store is currently pending.

Conclusion

Uniswap is one of the simple and user-friendly decentralized exchanges with a notable reputation in the crypto world. Any user can easily swap tokens by connecting the web3 wallet like Metamask, Coinbase Wallet, or Walletconnect. The gas fee required for swapping tokens is 0.3% which lesser compared to other exchanges. 

Uniswap also provides passive income for liquidity providers who provides liquidity to the market. The exchange also provides NFT where you can buy, sell and showcase your NFT collection. Moreover, due to the recent events in the crypto industry, investors are switching to DEX as they realize that Coins in your own wallet are safer than custodian wallets. 

Ultimately whether to use Uniswap will depend on your requirements and needs. If you want to trade Ethereum-based tokens then Uniswap is worth considering as an option as it has a good reputation and a user-friendly platform. 

FAQs