Launch a Decentralized Exchange Like Uniswap and overcome the risks of centralization
With centralized exchanges often becoming victims of hacking attacks, Decentralized exchanges have taken the center-stage in the industry now. It offers traders to exchange their digital assets without the presence of a central authority. Users experience better security and more privacy.
With the DeFi space expanding rapidly, Uniswap is one of the well-known decentralized exchanges that operate on the Ethereum blockchain network. Users can exchange Ethereum tokens with ease and also deposit their funds into liquidity pools. It uses automated market-making to handle daily trading activities and is highly resistant to transaction censorship.
The core features of a Decentralized Exchange like Uniswap
The users have 100% control over their assets as it is a completely non-custodial protocol.
Sufficient liquidity is ensured by facilitating instant trading for the users on the platform.
No counterparty risk is present in a Decentralized exchange ensuring a trustworthy trading experience.
Users can trade their assets anonymously without disclosing their personal identity or submitting any background information.
Automation of trades is ensured without the presence of any middlemen in the system.
The user experience offered is highly intuitive as operations can be performed by the traders through simple clicks.
Since it operates based on a trustless mechanism, the users’ funds and data are highly secure.
Privacy is ensured for the traders as no third parties are involved in the platform.
Peer to peer transactions can be executed easily and quickly.
There is no chance of any hacking attacks to take place as the data is not stored in a single centralized server but distributed across several nodes across the world.
Users can make use of their private keys to manage their funds and need not relinquish their custody or hand over control to anyone.
Many new Altcoins are emerging only on Decentralized exchanges in recent times.
The unique aspects present in Uniswap
- Sufficient liquidity is provided for the users whenever they swap their tokens on the platform.
- Users get access to the UNI governance token that they can use to participate in the future development of the platform by making important decisions and voting rights. The UNI token is provided to those users who lend on liquidity pools like ETH/USDC, ETH/USDT, ETH/DAI, and ETH.WBTC.
- The liquidity providers get 0.3% of the transaction fees per trade.
- Users can withdraw their ERC20 tokens anytime from the platform.
- The smart contracts are extensively audited and tested, ensuring a high level of security. There are two smart contracts, the Factory contact that is maintained on-chain and controls the liquidity pools and token swapping, and the Exchange contract, which supports any ERC20 token.
- Multiple crypto trading pairs are available on the platform for the users to diversify their investment.
- The decentralized price oracles ensure a real-time updated display of the information related to price changes and transaction data.
- Two-factor authentication is present, ensuring a safe trading experience.
- Multilingual technical support is provided round the clock to deal with any queries and glitches faced by the users.
- It offers an order expiration option for the users so that miners cannot withhold the unsigned transactions on the platform.
- The trading volume is distributed equally based on a certain proportion ensuring a high degree of uniformity.
- There is no set price limit even for those who perform small trades on the platform.
- No KYC is required for swapping and liquidity provision on the platform.
Launch Decentralized Exchange (DEX) Platform Like Uniswap
With the advent of decentralized finances came a new protocol that has kept eager crypto traders on their toes …
How does Uniswap function?
- It does not use any order books like a centralized exchange but offers the automatic provision of liquidity.
- Liquidity providers will create liquidity pools where the users can deposit their crypto assets safely.
- Users can exchange their ERC20 tokens for ETH tokens easily on the platform.
- A decentralized pricing mechanism automatically fixes the value of the assets to be traded by the users. The trends observed in previous valuations will be analyzed.
- The price of each token is influenced by market demand and supply. An individual buyer or seller cannot set the price of a token independently.
- The users need not undergo any authorization for offering the token to the liquidity pool. A certain percentage of fees will be received by them.
The step by step process to use a Uniswap like Decentralized exchange
- Open the Uniswap interface and integrate it with your digital wallet. Leading wallets like MetaMask and Trust Wallet are supported on Uniswap.
- Choose the token that you wish to exchange on the platform.
- Press the swap option.
- A preview of the transaction to be executed will be shown on the screen.
- Confirm the transaction request.
- The transaction will be processed soon and the status will be displayed immediately.
- You can check the progress made on a real-time basis by using Etherscan, which is the blockchain explorer of the Ethereum blockchain network.
Decentralized exchanges are getting greater business traction now and may surpass Centralized exchanges soon. Uniswap is a big game-changer in the fast-growing crypto world as it provides 100% asset ownership, is easy to use, is powered by an advanced architectural design, and offers sufficient liquidity to the users.