Uniswap has come to the forefront of the DeFi field. This is a comprehensive and easy-to-follow tutorial guide on how to swap tokens using Uniswap wallet.
The cryptocurrency field is going through different phases every year, and that’s only logical. As the industry progresses, more people get involved in it, bringing new solutions and technology to the table.
In 2020, it’s safe to say that the hottest crypto trend is Decentralized Finance (DeFi). In a matter of months, this became the most widely discussed topic within the cryptocurrency community and rightfully so.
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New DeFi projects are appearing daily, and it does bring a certain 2017-like appeal to it. At the forefront of all, this is a protocol that also surged in popularity – Uniswap. Below, we’ll take a look at how to use Uniswap in a step-by-step manner.
What’s Uniswap and why is it so innovative?
In a detailed guide on Uniswap, CryptoPotato went in-depth on the technicalities and functionalities of the protocol.
To sum it up in Layman’s terms, Uniswap wallet is a protocol that enables buyers and sellers to swap ERC20 tokens without having to use an exchange or an order book. It uses an algorithmic equation that determines the swap rate based on the balances of both tokens and the actual demand for this swapping pair.
In essence, Uniswap brings forth a very user-friendly interface and allows traders to swap their tokens without having to worry about any KYC procedures or even having an account, for that matter.
Uniswap also brings forward automated liquidity provisioning, but for the technicalities on that, we’d recommend reading our What is Uniswap in Simple Words guide.
Now, let’s get right into it and see how to use Uniswap.
Starting: Few Things to Consider
As we mentioned earlier, this is no regular exchange – there are no buy orders and no specific listings – anyone can add liquidity for a particular pair in Uniswap. They can just as quickly take that liquidity away, making it particularly hard for you to swap back your tokens. That’s why it’s essential to make sure that the liquidity for the pair you want to trade is locked.