What is Uniswap Cryptocurrency, and Why is it Useful?

There are 1,852 types of coins and 2441 trading pairs for Uniswap exchanges, as per a report.

By Radhika Parashar | Updated: 21 September 2021 09:47 IST

What is Uniswap Cryptocurrency, and Why is it Useful?

Uniswap exchanges only lists tokens built on Ethereum (ETH) blockchain

Highlights

Uniswap tokens can be used as cryptocurrencies and decentralised exchange
These tokens can incentivize users to add liquidity to their pools
In UK, trading in Uniswap tokens is popular in crypto space

In the up-and-coming crypto space, Uniswap plays a dual role, as both a cryptocurrency as well as a decentralised exchange (DEX). Built on the Ethereum blockchain, Uniswap allows users to swap ERC-20 tokens – which can be used to represent a wide array of digital assets as well as financial values. Uniswap exchanges only lists tokens built on the Ethereum (ETH) blockchain. Uniswap traders need to enter into smart contracts via which they can deposit their crypto assets into pools each of which comprises of two ETH-based crypto tokens – which in a pair represent the assets deposited in that pool. To put it more simply, Uniswap is a way for people to exchange different types of tokens built on the popular Ethereum blockchain, in a secure manner, without having to rely on a centralised exchange.

Trading in Uniswap tokens (UNI) allow crypto-holders to participate in the governance of this finance protocol as they enter to explore the space of decentralised finance (DeFi). Independent of central financial intermediaries like exchanges or centralised online wallets, DeFi uses Ethereum blockchains for financial transactions.

Trading in Uniswap tokens

As per tech website CoinGecko, there are 1,852 types of coins and 2441 trading pairs that are supported on Uniswap exchanges.

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Unlike other decentralised exchanges, UNI tokens allow holders to trade in any two ETH-based crypto coins, which is termed as a “swap”. The action is seen as a more liquid way of exchanging large amounts of crypto.

Uniswap tokens (UNI), one of which is priced at $27.02 (Rs. 1,990) on Monday, use multiple crypto assets that can be exchanged among traders without any involvent from any central operator.

UNI traders can purchase, sell and hold the crypto tokens via credit cards, debit cards, bank transfers as well as digital wallets – providing fluidity in trading gateways. The exchanges can be facilitated via trusted crypto exchange platforms that allow UNI purchases with competitive fees and low spreads.

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Earlier in July, a report by Economy Watch claimed that Uniswap is a popular crypto asset in the UK. With a market dominance of 0.67 percent, Uniswap has a market capitalisation of $9.4 billion in the UK.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: Cryptocurrencies, ETH, ethereum, Uniswap, UNI tokens

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More