Monday, August 8

Have you ever used Uniswap? You are part of this milestone in Ethereum

If you ever had to exchange tokens developed on the Ethereum blockchain (for example, Shiba, DAI, or USDT) and you did not want to use centralized exchanges such as Binance or Coinbase, you have most likely entered Uniswap. This decentralized exchange reached a new milestone days ago: the equivalent of USD 500 billion in tokens was traded on the platform since its launch in November 2018.

“We are proud of the magnitude of this number,” published Uniswap in its twitter account October 25. As a reflection on the milestone, the organization adds that “users increasingly value transparency, security, autonomy and reliability.”

Also the founder of Uniswap, Hayden Adams, was happy with the achievement and said be “thankful for everyone who has been on the trip.”

It can be considered that the journey Adams refers to had its seed in 2017. Back then, Ethereum creator Vitalik Buterin dreamed of a decentralized exchange (or DEX) on that blockchain. This is how he left it embodied in a post on Reddit.

In 2018, Buterin wrote on a forum about what money-making markets might look like (market makers) decentralized. That’s when Hayden Adams came on the scene, like answer to that post: “These are very interesting ideas! I will look to add one of these solutions to my 221 implementation of a market maker x * y = k ».

That was the germ of what would later become Ethereum’s flagship decentralized exchange: Uniswap.

For those interested in knowing how Uniswap works, CriptoNoticias developed a tutorial detailing the steps to follow to exchange tokens on this exchange. Unlike what happens in centralized platforms, in the protocol developed by Adams it is not necessary to provide personal identification data to operate, but it is enough to connect an Ethereum wallet to the page.

Uniswap reached the milestone of USD 500 billion traded on the platform since its launch in 2018. Source: Uniswap /

News that evidence the progress of Uniswap

This medium has reported numerous news in which Uniswap was the protagonist. One that caused the joy of all users was the launch of the UNI governance token, in September 2020. Anyone who had ever used the exchange received 400 units of that token, which was equivalent to roughly $ 1,500 on launch day. If someone keeps those tokens, today they have the equivalent of almost $ 10,000.

Numerous Uniswap updates were also released. Between them, the implementation of second layers of Ethereum stands out, to increase scalability and thus improve the user experience, in terms of waiting times and payment of fees.

Uniswap’s minimalist design, which was almost unchanged throughout its history,
makes exchanging tokens an intuitive task. Source: Uniswap.

Among the not-so-good news, there are some facts that called into question the decentralization of the protocol. In December 2019, the exchange house blocked access to residents of 10 countries with international sanctions: Cuba, Belarus, Iran, Iraq, Sudan, Zimbabwe, Ivory Coast, Liberia, Syria and North Korea.

Most recently, in July of this year, the exchange restricted various tokens from its website to comply with regulations. This was a unilateral decision from the exchange’s management, and without taking advantage of the resource of governance. The holders UNI officials were unable to vote on whether or not they agreed with the measure.

$ 7.5 billion of liquidity locked in Uniswap

With times of headwind and others of headwind, Uniswap continues to advance. With the equivalent of USD 7.5 billion of liquidity deposited in its platform, is positioned as the third largest decentralized exchange, after Curve (specialized in stablecoins) and PancakeSwap (copy of Uniswap on the Binance Smart Chain).

Such liquidity allows Uniswap to offer more than 50 thousand exchange pairs to its users. It is the preferred exchange on Ethereum for developers of new tokens to publicize their product (many times with good intentions, and many other times they turn out to be scams).

The future of Uniswap, although unpredictable, seems to be heading towards a good port. The creator of Ethereum, Vitalik Buterin, usually names it among the platforms that he considers interesting and has given some recommendations on which path – according to him – it should follow.

For his part, Hayden Adams is enthusiastic about each new achievement, advancement or gets better implemented in the protocol that he developed and whose team he now leads.