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Uniswap

Uniswap

UNI
Price
€ 7,287
+ 0,84%

MARKET STATS

Price change (1D)
+3.58%
Ranking
#24
Market cap
€ 4.66B
Volume (24h)
€ 141.92M
All time high
Coming soon...
Circulating supply
Coming soon...

About Uniswap

Among the many exchanges out there for crypto, Uniswap stands out as one of the largest names in the field. While not a centralized exchange like Coinbase or Kraken, Uniswap handles a lot of trade volume every day. In addition to this, Uniswap has its own token with some functionality in the application.

But, what are these functions? How easily can you get into holding Uniswap? Let’s take a look at what Uniswap is and how a payment processor like iDEAL can make buying Uniswap’s token easy.

What Is Uniswap coin?

Uniswap isn’t like most of the other cryptocurrencies that you see on the top 50 by market cap charts. While many coins and tokens on these lists represent the exchange of value within a blockchain, Uniswap is instead a token originally built on the Ethereum blockchain thanks to its ERC-20 token creation protocol.

However, it’s easy to get this token mixed up with the protocol of the same name. The Uniswap protocol is an automatic market maker (AMM) that manages and helps create markets between trading pairs of cryptocurrencies. By using smart contracts, coded agreements between two parties on the blockchain, Uniswap can automate the trading that happens on its platform.

Users that participate in the protocol can lend their coins and tokens to the protocol, rather than trading them. By doing so, the user receives liquidity pool tokens that represent their share of the pool. Whenever a trade happens between the pair of cryptocurrencies submitted, the user receives a portion of the fees proportional to their share of the pool.

By creating and maintaining these smart contracts, Uniswap is one of the most well-known decentralized finance (DeFi) protocols both on the Ethereum blockchain and the crypto space as a whole.

Uniswap Coin

The Uniswap token (UNI) acts as a governance token for the Uniswap protocol. As a governance token, UNI is utilized by users that want to have a say in how the protocol conducts itself and moves forward. This participation by holders of the Uniswap token is part of what makes Uniswap a decentralized platform.

Otherwise, the Uniswap token doesn’t do much right now. Unlike other AMMs, Uniswap doesn’t reward liquidity providers with its native token as an incentive to use its ecosystem. Competitors further incentivize folks to use their protocol by having higher payouts as they mint more of their tokens.

This payout structure is what makes Uniswap different. Because Uniswap doesn’t have to pay its token out to liquidity holders, the Uniswap token doesn’t see much minting of new tokens. With a fixed supply, the price of Uniswap can go up or down based on market forces and sentiment rather than risking supply inflation exceeding demand.

The Uniswap Governance Process

As a governance token, UNI has a use case in helping decide what direction the Uniswap protocol goes. To do this, several steps have to happen:

  1. A person submits a proposal to both the Uniswap forum moderators and via a call in Uniswap’s Discord server
  2. The proposer of the improvement does a Temperature Check, which is a snapshot vote to see if the proposal is good according to the broader community that takes 1000 UNI tokens to create.
  3. As community feedback comes in, the Temperature Check proposal is refined and put to new votes until fully realized.
  4. Using another 1000 UNI, a consensus check is created to ensure that the rest of the protocol users are in agreement.
  5. The proposal elevates to an on-chain vote, where a concordance of 2.5 million UNI is needed to create the change proposed by the community proposal.

In other words, creating a community proposal and getting it to pass is similar to passing a law in a legislature of some kind. The proposal receives heavy reviews from thousands of users to ensure that the proposal will benefit the overall system. One false move with a proposal can result in the loss of revenue or service, so users are careful to check out new ideas.

The Pros and Cons of Decentralized Governance

With the advent of smart contracts, decentralized governance has allowed users of all kinds to band together to create and maintain working ecosystems for their cryptocurrency. This voting mechanism where you commit held coins or tokens to a proposal exists across all kinds of projects, not just Uniswap.

While they might not be clear at first, there are some solid advantages to going the decentralized route with cryptocurrency governance:

  • Trustless: You don’t have to trust that the other parties will do as they say they will, but instead that the smart contract code will execute correctly.
  • Accessible voices: People get a voice regardless of whether they hold one token or one thousand of them.
  • Reduced conflict: By placing the power to make changes solely in the hands of the token holders, there is an incentive for community proposals to be in favor of adding value to the protocol.

However, the decentralized nature of these protocols means that there are some drawbacks native to them:

  • Slow: It can take a long time to enact a community proposal if there is no fast-track option available for emergencies.
  • Votes are proportional to tokens held: Someone holding one thousand tokens has much more sway in a vote than someone with only one token, which can feel unfair.
  • Not for the average user: Getting into these votes requires some technical know-how, which could put DeFi and other decentralized services out of reach for some folks.

For now, we will have to wait and see if these decentralized governance tools continue to work or not for Uniswap and the other decentralized protocols out there. Many of these protocols have their own rules and values to better match the protocol’s goals. Time will tell which models work out in the long run.

Buy Uniswap with iDEAL

If you’re interested in investing in Uniswap, the easiest way to do so is by buying Uniswap with iDEAL for yourself. Most centralized exchanges let you connect a checking account or another payment processor.
However, both options tend to take a few days to connect and have funds deposited into your account. iDEAL lets you use your credit card or debit card to get funds into your crypto exchange account faster and make the funds readily available for you.

To use iDEAL, you’ll want to follow these steps:

  • Buying Uniswap with iDEAL on Knaken is easy. First, select the crypto you want, which in this case is the Uniswap coin. Next, select "iDEAL" in the dropdown box under "Payment method."
  • You'll find the list of other payment methods we offer, including credit card and bank transfers. Click "Buy" and wait for your transaction to process.
  • Once your UNI crypto arrives, you can view it from your Knaken dashboard. From there, you have complete control of your UNI coins—keep them on Knaken, stake them, or move them to a cold wallet.
  • If your goal is to build up a long-term hold of Uniswap, we recommend setting a calendar reminder to return to Knaken on a weekly or monthly basis. That way, you can dollar cost average your way into your UNI investment.

Summary

Uniswap shares its protocol name with its token, abbreviated as UNI. This token allows holders to participate in governance and community proposals meant to improve the function and performance of the Uniswap ecosystem.

Payment processors like iDEAL make buying into tokens like UNI easy by allowing you to use your credit card to add funds. Try using iDEAL today to get into the wonders of UNI!

Resources

FAQ

  • What do I have to do to buy Uniswap?

    Make sure you have an account with Knaken. You can register in the app or at the registration page. Then verify your personal data, and you are ready to buy Uniswap.

    You can select Uniswap in the app or web portal, choose an amount and immediately make the payment with, for example, a credit card.

  • Can I buy Uniswap with credit card?

    Yes, at Knaken you can easily buy Uniswap with, for example, iDEAL, credit card or Bancontact. Check all options on our fee page.

  • What do i have to pay to buy Uniswap?

    You can find the current price of Uniswap at the top of this page.

    At Knaken we believe it is important to be as transparent as possible to our customers about the costs that are charged. It is possible to look into the costs for every purchase or sale of Uniswap.

    Take a look at our costs page for more info.

  • Is it safe to buy Uniswap?

    At Knaken, safety comes first. For years we have ensured that you can not only buy crypto securely on our platform, but also store it.

  • Can i send Uniswap to Knaken?

    Search for Uniswap in the app or web portal and select “deposit” in options. Here you will see the deposit address where you can send the crypto. Make sure you deposit Uniswap from a wallet address that has been verified with Knaken.

  • Can I withdraw Uniswap from Knaken to my own wallet?

    Yes, search for Uniswap in the app or web portal and select the withdrawal button in options. Please note that you can only withdraw Uniswap to a verified wallet address.

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