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- First Automated Market Maker featuring liquidity pools (having first movers advantage)
- Decentralized exchange
- One of the most forked projects, meaning people use its code to build different applications
- Allows trading ERC-20 tokens without an exchange directly
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- Called “Constant Product Market Maker Model”
- X*Y=K
- Ex 1: 10ETH (Pool A) * 10,000DAI (Pool B) = 100,000 (Constant)
- If I bought 1ETH, Pool A would now be 9TH
- You find the amount of DAI left by doing Constant/Pool A (100,000/9ETH)
- Therefore, 11,111 DAI = 1ETH
- Ex 2: 10ETH (Pool A) * 10,000DAI (Pool B) = 100,000 (Constant)
- If I bought 9ETH, Pool A would now be 1TH
- You find the amount of DAI left by doing Constant/Pool A (100,000/1ETH)
- Therefore, 10,000 DAI = 1ETH
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- Allowed trading ETH to ERC-20 tokens only
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- Trading to ERC-20 to ERC-20 tokens added
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- More effective use of capital and efficient trading
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- Get Metamask
- Go to Uniswap.org
- Connect Uniswap to Metamask
- Begin trading
- Be aware of a price slippage
- Usually because Uniswap has to broadcast transactions onto Ethereum
- It’s possible to cap your slippage if needed
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- Airdropped in September 2020
- A governance token
- Allows Uniswap users to decide on future development
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