Uniswap is a decentralized cryptocurrency exchange based on network protocol. The company that created Uniswap Protocol was originally called Uniswap. The protocol uses smart contracts to enable automated exchanges between cryptocurrency tokens on the Ethereum network.
Before we understand if Uniswap is a good investment or not, let’s try to understand, what is Uniswap?
Uniswap is a good investment: some important facts about Uniswap?
- Uniswap is a group of computer applications that enables decentralized token exchanges on the Ethereum network.
Unicorns assists in its operation.
- At Uniswap, traders can trade Ethereum tokens without having to put their money in the hands of third parties. Anyone can lend their cryptocurrency to specialized reserves known as liquidity pools in the meantime. They receive commissions to contribute money to these pools.
- There is no listing procedure due to the decentralized nature of the Uniswap protocol. For the most part, any ERC-20 token can be issued as long as a pool of liquidity is accessible to traders. Uniswap therefore does not impose any listing fees. The Uniswap protocol functions in some way as a public good.
Uniswap is a good investment: the strength behind the development of Uniswap
The founder of Uniswap, a popular decentralized application based on Ethereum, is Hayden Adams. Hayden worked at Siemens before founding Uniswap
A number of venture capital firms have invested in Uniswap, including Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures LLC and ParaFi.
Uniswap is a good investment: Tokenomics
Uniswap has a maximum supply of 1,000,000,000. Of these, the Uniswap team and seed investors own 39.21% of the total offering.
How Uniswap works
- Uniswap is an automated liquidity protocol on the Ethereum blockchain that is based on a constant product formula. Decentralization, censorship resistance, and security take priority over trusted intermediaries.
- The pair acts as an automated market maker, taking any token for any token as long as the “constant product” formula is followed. Essentially, this formula says that trades cannot change the product (C) of reserve balances (A and B) between pairs. The framework of a trade remains unchanged, which is why C is referred to as an invariant. The formula has the desirable property that larger operations are performed at exponentially worse rates than smaller ones.
Is Uniswap a good investment?
Some data for $UNI:
- Market Cap: $4.85 billion
- Ranking among all cryptocurrencies: 17th
- Uniswap competitors: PancakeSwap, Sushiswap, Kyberswap, Dodo, etc.
- Current Performance: Overperformer
- % of currently profitable owners: 28%
- Looking at the project, Uniswap has technology at its side and has the potential to give returns to Multibagger.
- However, it is recommended that you do your own research before making an investment in any cryptocurrency. Currently, the market is very volatile and the chances of losing are more than gaining. You should only invest the amount you can bear to lose.