Uniswap

• Uniswap (UNI) is the governance token for the Uniswap protocol, a DEX on the Ethereum blockchain.

• Enables automated trading of DeFi tokens using AMM technology.

• UNI holders can make governance decisions on protocol upgrades and fee structures.

• It aims to be a community-driven project.

• 1 billion UNI tokens were minted initially, with a four-year distribution plan.

• Allocation: 60% to community members, 21.266% to team and future employees (4-year vesting), 18.044% to investors (4-year vesting), and 0.69% to advisors (4-year vesting).

• After four years, a 2% annual inflation rate begins to encourage ongoing engagement.

As of today #{today’s date}, the price of Uniswap is ₹801.24 INR or 9.157 USD, with a 24-hour trading volume of 565696569.89 USD. The market capitalisation for Uniswap is 5460589059.13USD. The circulating supply is 600425073.71 Uniswap, with the total supply also being 1000000000 Uniswap.

Pros:

• Decentralised governance allows UNI holders to influence the direction of the protocol.

• Liquidity providers can earn fees, incentivising participation in the ecosystem.

• Strong community and developer support, with continuous upgrades and a focus on security.

Cons:

• Exposed to impermanent loss due to price volatility.

• High Ethereum gas fees can affect transactions during peak times.

• Limited to ERC-20 tokens, excluding direct trading of non-Ethereum-based assets.

• A central role in DeFi, strong governance, and potential fee-sharing mechanisms.

• Leading position in DEX space could increase UNI demand and value as DeFi grows.

• USP of the Coin

• Decentralised, automated liquidity provision for seamless token swaps.

• Eliminates the need for traditional market makers or order books.

• Tackles liquidity and high slippage issues in decentralised trading.

• Uses AMM to ensure constant liquidity for numerous token pairs.

• Created by Hayden Adams, inspired by Ethereum co-founder Vitalik Buterin.

• Development is supported by a grant from the Ethereum Foundation, with a growing developer team.

• No traditional ICO; UNI tokens were distributed via airdrop to early protocol users.

• Includes regulatory uncertainty, price volatility, and technical risks related to smart contracts and the Ethereum blockchain.

The Uniswap whitepaper introduces the protocol as a novel AMM designed to function as a public good on the Ethereum blockchain. It outlines the mechanism of creating liquidity pools for ERC-20 tokens, enabling decentralised, permissionless trading. The whitepaper details the constant product formula,

, which ensures liquidity and determines prices within each pool, allowing for automatic and efficient market making.

Uniswap’s governance model, facilitated by the UNI token, empowers community members to participate in decision-making processes, ensuring the protocol remains decentralised and aligned with the interests of its users. The whitepaper emphasises the importance of decentralisation, security, and censorship resistance, positioning Uniswap as a foundational component of the DeFi ecosystem.

The document also discusses the challenges of decentralised exchanges, such as impermanent loss and front-running. It presents Uniswap’s solutions, including using liquidity pools and the potential for future protocol upgrades through governance proposals. It concludes with a vision for Uniswap as a self-sustaining, community-driven platform that promotes innovation and accessibility within the cryptocurrency space.

This summary encapsulates the core ideas and mechanisms behind Uniswap, highlighting its contributions to decentralised finance and the broader Ethereum ecosystem.