Beginner’s guide to Uniswap: Introduction and Functioning
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Uniswap, a set of computer programs that runs on the Ethereum blockchain, is a mechanism that supports a decentralized fashion of token swapping. While trading, it allows an individual to lend their funds to a reserve called a liquidity pool and the reserve, in turn, allows the trader to perform the exchange of tokens.
In brief, Uniswap allows a trader to exchange their funds without involving any third party whatsoever.
But, the important question is, why do we need Uniswap?
How does it function?
Is it really worth using it?
To answer these queries, we will dive a bit deeper to understand what Uniswap is and how things go about it.
Excited to learn more? Let’s get started!!
Introduction
High trading volumes, better liquidity, and fast settlement time are some of the advantages offered by the CEXs that have dominated the exchange markets for several years. However, as more and more people are learning about the blockchain tech and its applications, parallelism is being created by the trustless protocols of the DEXs.
