Hello Steemians, it is another day Crypto-academy where we have been taught by @gbenga, who taught everything about Ethereum. In our task we are expected to explain one project that has been built on the Ethereum Blockchain.

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Explain in full a project built on the Ethereum Blockchain.

Many top Ethereum project are focused on Decentralised Finance (DeFi) and it aims to expand the utility of cryptocurrencies from day-to-day transactions to more complex financial use. This protocols include MakerDao, UniSwap, Chainlink, Axie Infinity, Aave, Compound, SushiSwap amongst others.
For this post, I will be talking about is the UniSwap Project.

UniSwap

Is known as the big daddy of today's DeFi. It stands for decentralized Ethereum based protocol which allows users to safely exchange ERC20 tokens based on the AMM ( Automated Market Maker). It runs on two smart contract: Exchange Contract and Factory Contract. It serves as an exchange site for cryptos but for this to take place, you have to provide your own liquidity to the protocol first. It built in 2018 by Hayden Adams who was inspired by Ethereum founder Vitamin Nigerian when he made a post about Market Maker Equation XY=K.
In The XY=K equation, the X*Y represent respectively the number of available ETH and ERC20 tokens. K represents a constant that can be set by the creators of the Exchange contract on the UniSwap. When you multiply X by Y, the value must always be equal to the value of K. UniSwap is now a leading decentralized crypto exchange that runs on the Ethereum Blockchain.

There are two types of UniSwap creation (V1 and V2). In UniSwap V1, all liquidity pools are between ETH and a single ERC20 tokens. Users can only swap any ERC20 for any other ERC30 by routing through ETH, it couldn't be done through any other dapps. Its disadvantages were

• Higher fees
• UniSwap strongly tied to the use of ETH
• Not possible to swap ERC20 tokens directly with other ERC20 tokens.

Because of these disadvantages, UniSwap V2 was created
UniSwap V2 provides end-users with three different options to swap their tokens unlike the V1 using Router Contract.

• A direct swap.
• Swap through ETH.
• Custom path swaps.

The Merits of UniSwap V2 includes.

• Decentralization
• Any new token can directly access liquidity through adding their tokens for an exchange to the UniSwap V2 router contract.
• Low-cost traders compared to a DEX or centralized exchange.
• Liquidity providers can benefit from contributing liquidity to liquidity pools.

Demerits of UniSwap V2 includes

• Possibility for flash swap attacks.
• It still relies on arbitrage trading to remove market imbalances.
• there are Fake token listings.
• Presently, high gas prices because of high Volume of trade makes trading with UniSwap more expensive.1

STEPS TO USING UNISWAP

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I am using Trust Wallet Application for my transactions.

• Go to the UniSwap app or interface
• Connect an Ethereum wallet using Trust Wallet, or any other supported Ethereum Wallet or any dapp.
• Select the token that you want to exchange from.
• Also select the token you want to swap it with
• Click on Swap.
• Check the transactions that will appear on your screen
• Confirm carefully the transactions request that is sent from your wallet.
• Wait for the transactions to be confirmed. You can also check or monitor on etherscan [https://etherscan.io/]

I hope with my post, beginnerrs can be able to know their way around UniSwap.
Thank you@gbenga for the lectures and the homework

#gbenga-week4 #cryptoacademy #nigeria #ethereumproject #steemit #blockchain