Everything to Know about Uniswap- Decentralized Exchange (DEX)
DEX is an automated system of crypto trading and is one of the most popular exchanges (DEX) out there due to the growing popularity of distributed funds (DeFi). Users can become pool fund providers to Uniswap by entering an equal amount of each basic token to replace other pool tokens.
Uniswap has two main features or features known as Swap and Pool:
Pool: Uniswap Pool allows users to benefit from cash donations. This is done by entering the tokens into a smart contract and you will receive the return of the tokens in the pool.
Is it a scam?
When exchanging coins at Uniswap, transactions may be at risk of failure. This is mainly due to 3 reasons.
- You paid very little for gas and the transaction took longer than the hard deadline made in the transaction.
- You specified the maximum amount you would like to pay for each token but the amount exceeds the maximum amount before the work is completed.
- There is not enough money in the pool.
In these cases, your transaction is “reversed” which means a reset as if the transaction has never happened, so you will not lose your money. Hence, it cannot really be said that Uniswap is a scam.
Counterfeit coins: Anyone can write their own tokens on Uniswap, so there are people out there who are writing illegal coins to Uniswap in the hope of being able to defraud people in sending their money for these coins. Consistent users, therefore, need to be extra careful in this regard.
How can you use consistency?
In Uniswap, click “Launch application” and “Connect to wallet”. Select the MetaMask wallet (or any other wallet you want to connect with) and click on “Connect wallet”. A pop-up window will appear showing your account, select the wallet and click on “Next” and “Connect”. After that you are ready!
Token tab allows you to switch between ERC-20 tokens. On the Switch tab, select the number of ERC-20 tokens you want to exchange. Select the token you like to switch to by clicking the down arrow under “To”. A list will appear, and you can select the token you want to switch to, or if your token is not listed, you can paste the token address. Price tab will indicate the limit of how many tokens you can get after an exchange. To confirm, click “Swap”.
You will be then redirected to a page confirming your change (see image below). But, there are a few things you need to look for here:
- The amount you exchange, and the amount you will receive
- Minimum amount sent: A guaranteed amount you will receive if the price drops while the transaction is being processed
- Price effect: The difference between the market price and the price ratio provided by Uniswap for the size of the trade
- Supplier fee: The amount you will pay to Uniswap. This is usually 0.03% of the transaction.
Once your exchange is verified, a pop-up window will appear (see image below) to confirm the price of electricity that will be paid for this exchange as it is an Ethereum transaction. Enter the fuel price you want to pay and click on “confirm”.
Once the transaction is complete, Uniswap will notify you and provide you with a link to Etherscan to show your transaction details. Here you can check how many tokens you actually exited on the exchange, as well as the number of transactions paid.