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Uniswap (UNI) For Exchanging ERC 20 Tokens on the Ethereum Ecosystem



Whether it be Bitcoin, Ethereum, or Uniswap all of these form a part of the cryptocurrency space, where the value supply/ alternative money supply is tokenized.  Token swaps means value swap with another value storing token.

The Uniswap Protocol is on the Ethereum Mainnet.  The Uniswap Protocol is a protocol for trading and automated liquidity provision.  UNI is an ERC 20 token which provides for community led growth, self-sustainability and further development.  Uniswap (UNI) does a great job in terms of Exchanging ERC 20 Tokens on the Ethereum Ecosystem.

People want to store their value in a safe network and they want access to their value when they need it.  In traditional markets, it was possible to store the value, but liquidity was hard.  However, with computer automated codes and protocols on the blockchain quick liquidity is possible.  The codes on the protocol process the calculations for liquidity quickly and make liquidity available for its users.

Sometimes users want to swap one security type for another just because they have a bias towards the value proposition it offers in terms of being a better store of value.  People always want to switch over to a token or asset type that has better scope in terms of appreciation as an asset class.

There is a Uniswap Governance Framework.  Since the protocol is focused on trust minimization and neutrality, governance is exerted only where it is strictly required.  Thus, whether about usage, protocol development, or development of the broader Uniswap Ecosystem, the governance exerted is minimal.

UniSwap Protocol for Permissionless Financial Service

For clarity, the Uniswap Protocol is a code that backs the UNI cryptocurrency.  Typically, in a trading platform there are different value tokens and it becomes important to assess the relative value of one token for another in multiple scenarios to facilitate liquidity.  The Uniswap Protocol does just that.  They are expecting to establish well as a permissionless financial service.

UniSwap have already established themselves well by supporting more than 20 billion in volume, which was traded in over 250,000 unique addresses across 8,484 unique assets.  The protocol has secured more than 1 billion liquidity that has been deposited by more than 49,000 unique liquidity providers.

There are standard templates which define how liquidity pools should be formed.  Each of these liquidity pools are operated by their smart contracts.  There are functions included to facilitate token swapping and to improve liquidity.

UniSwap has also evolved to be a good DeFi Infrastrucure.  The protocol has made it possible to integrate across different interfaces and applications.

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