Uniswap Exchange Review
- Intermediate Traders
- Advanced Traders
- Privacy Focused Traders
- Liquidity Providers
Uniswap is a decentralized cryptocurrency exchange (DEX) that launched on the Ethereum mainnet in November 2018. Users can swap, send, pool, and trade Ethereum (ETH) and 120+ listed ERC20 tokens. Uniswap does not maintain order books, as the protocol utilizes incentivized liquidity pools powered by smart contracts as a means of market making.
Uniswap Exchange 2019 Comprehensive Review
Uniswap Exchange Overview
|Trading Fees||Maker: 0.3% / Taker: 0.3%|
|Purchase Options||Crypto Deposits|
|Trading Options||Spot Trading|
|Token Benefits||NO TOKEN|
|KYC Rules||On-chain exchange and order book, No KYC required for any trade amount.|
|Convert Micro Balance|
|Customer Service||Email, Discord|
Uniswap Trading Fees (Maker & Taker)
|Tier||Monthly Volume Requirement||Maker||Taker||Maker|
All trade request are done on-chain so a gas fee is incurred.
Uniswap Withdrawal Fees
Users participating in token swaps do not have to deposit or withdraw funds on the exchange. All trades are handled on the Ethereum blockchain by smart contracts. Therefore, the only ‘withdrawal fee’ is the gas required to move the funds from the Uniswap smart contract.
Liquidity providers will also need to pay a small gas fee for providing liquidity and removing liquidity on Uniswap.
Uniswap Markets & Volume
Uniswap Top Markets
|Crypto Assets||Price||Pairs||24h Volume|
Uniswap Supported Stablecoins
|Stablecoin Assets||Price||Pairs||24h Volume|
Uniswap Exchange Alternatives
|Trading Fees||Maker : 0.3%|
Taker : 0.3%
|Maker : 0%|
Taker : 0%
|Maker : 0.1%|
Taker : 0.2%
|Purchase Options||Crypto Deposits||Crypto Deposits, Credit Cards||Crypto Deposits|
|Trading Options||Spot Trading||Spot Trading||Spot Trading|
|Headquarters||New York, NY||Singapore||Panama|
Pros and Cons
- Liquidity Provider Incentives - Liquidity providers collect all fees (except gas) from Uniswap token swaps. Each liquidity provider is able to earn an amount of ETH and ERC20 tokens proportional to their percentage of total pooled funds.
- Liquidity Provider Requirements - There is no minimum deposit required for liquidity providers, making this option easily accessible to everyone. Liquidity providers who wish to add or remove funds on Uniswap’s liquidity pool can do so at any time, only needing to pay a small gas fee.
- Transparent Liquidity - Anyone can view Uniswap’s liquidity reserves for any listed crypto asset in real-time. This not only helps potential liquidity providers understand which assets are popular, but also enables traders to know whether or not market orders (swaps) can be 100% filled.
- Supported Tokens - 120+ ERC20 tokens are available for trading. Uniswap also lists interest-earning crypto assets like CDAI and CUSD, which aren’t found on many crypto exchanges.
- ERC20 to ERC20 Swaps - Uniswap enables traders to seamlessly exchange any listed ERC20 token for another with a single transaction.
- Low Gas Fees - Uniswap has the lowest transaction based gas costs of any DEX.
- Trade & Send Feature - Generally, DEXs use smart contracts that can only send traded funds back to the same wallet. The ‘Send’ function on Uniswap enables traders to exchange assets and send to another wallet in a single transaction.
- High Trading Fees - A 0.3% maker and taker fee is considerably higher than any other DEXs charge.
- No Chart Interface - Uniswap’s exchange interface is basic and listed crypto assets do not have individual price charts. Advanced charting will need to be done with an external service like TradingView.
- Liquidity Ratios - Uniswap requires liquidity providers to deposit ETH and an ERC20 token at a 1:1 ratio. When a provider removes liquidity, the ratio could become one-sided depending on market demand from traders.
- Ethereum Blockchain Assets Only - Uniswap does not currently support crypto assets that are not native to the Ethereum blockchain.
Frequently Asked Questions
Is Uniswap safe?
Uniswap is generally considered to be a safe decentralized exchange for trading crypto assets. Token swaps are highly secure since they do not require funds to be held on the exchange. Uniswap smart contracts have been audited by Consensys. The audit report can be found here.
What is the expected ROI for liquidity providers?
Variables such as liquidity pool size, crypto asset value volatility, and trading volume make it difficult to precisely predict an expected ROI for liquidity providers on Uniswap. Two tools that display ROI data for liquidity providers are Uniswap ROI Calculator and Pools.fyi.
Is Uniswap actually decentralized?
Yes. Uniswap is considered to be one of the most decentralized exchanges on the market. Token swaps and liquidity pools for all crypto assets are on-chain and non-custodial.
Is Uniswap the only DEX that uses liquidity providers?
No. KyberSwap is another DEX that utilizes liquidity providers, but requires blockchain development skills. Uniswap’s design makes it simple for any non-technical user to become a liquidity provider.
Does Uniswap have a mobile app?
No. Uniswap does not currently have a mobile app. But the exchange is Mobile friendly.
Uniswap has had immediate success since launching in Q4 2018. Their unique approach to liquidity in the decentralized exchange markets has captured the attention of traders and investors looking to earn an ROI on their crypto assets.
Recent increases in transaction volume indicate that Uniswap is building momentum and starting to challenge Ethereum-based DEX competitors such as IDEX and EtherDelta for relevant market dominance.
Overall, Blockfer recommends Uniswap for both privacy focused users seeking an efficient decentralized trading experience and DeFi (decentralized finance) savvy investors looking to earn an ROI on their crypto assets as liquidity providers.
|Learn More||Best Features|
Uniswap Official Website
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