Specialties of Uniswap Protocol
There are about many decentralized open-source protocols available in
DeFi space and each has their own specialties. Here let us look at the key features of Uniswap that make it a more special protocol among all other DeFi Protocols.
Equation Instead of Order Books
In Uniswap decentralized protocol, the price of assets, the trade of tokens, token swapping, and all are calculated on the basis of the equation and there is no presence of an order book or any central authority. Thus, Uniswap allows for trade with a high degree of decentralization and also censorship resistance.
Constant Product Market Maker Model
The main difference between Uniswap and other decentralized protocols is that Uniswap uses a unique pricing mechanism which is termed as Constant Product Market Maker, which is similar to the Automated Market Maker model.
Liquidity Pools
Every decentralized exchange faces the problem of liquidity and Uniswap is one that tries to solve the liquidity issues better than any other DEX platform. This Uniswap allows for the swapping of tokens without primarily relying on buyers or sellers to create liquidity.
Automated Smart Contract
Uniswap works based on ETH-ERC 20 Exchange Factory Contracts. Each token has one exchange contract and they are automated market makers between the price of ETH-ERC20 pair. Thus price determination and trades are executed automatically in Uniswap protocol.
Token Swapping
Uniswap is the only decentralized protocol that users can swap, stake Ethereum tokens without any listing process or charging fees. This Uniswap offers for about 2,000 trading pairs and allows for seamless token swapping and trading.
What Uniswap Offers The World?
Uniswap, the best money making protocol offers complete control over your digital money. By Uniswap V1 and Uniswap V2, this DeFi protocol offers many trading features and functionalities to its users.
Here is the list of things that this DeFi based protocol offers its users.
Complete Control over your funds
No censorship for your assets and transactions
High level of Liquidity - Add or remove liquidity to the pool
Trustless way of exchanging ERC 20 tokens
Make You earn ETH through Yield Farming and Staking
Cent percentage Decentralized
Low cost for DEX Trading
Allows users to contribute liquidity to Uniswap Liquidity Pools
Allows for direct token exchange
These are the major benefits one can acquire by utilizing the Uniswap Protocol.
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