We have previously provided a definition about Uniswap and how it works, while in this article we will provide a step-by-step guide on how to use the Uniswap platform.

Uniswap is now increasingly popular as the latest revolution in the Ethereum scene, along with Compound, Yearn Finance, 1inch Exchange, Balancer…

The Uniswap protocol added a clear impetus to the field of decentralized finance, providing solutions that traditional decentralized exchanges were suffering from.

Importance of Uniswap:

The first generation of Decentralized Exchanges (DEXs) failed due to lack of liquidity and were relatively complex for users.

As for the problem of lack of liquidity, it can prevent users from quick trading opportunities. Also, decentralized platforms are called decentralized only when in reality they are centralized platforms that are operated by a few nodes and which is behind a specific entity.

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Whereas in the new decentralized platforms the trader can be the same as the market maker and benefit from or earn zero fees for himself.

The fees are high but who really earns money in DeFi..

Merchant – You
Aggregate Liquidity Provider – You
miner – you
Early Investor – You

Who makes money in CeFi..

Banks – not you
Exchanges – not you
Market Makers – Not You
VCS – Not you

– gauze (shashxxx) August 19, 2020

Uniswap and Metamask:

DeFi now enables a whole new ecosystem where:

a) Buy Cryptocurrency and Create Liquidity with Uniswap

B) Set wallet with Balancer

c) Get loans with Maker or Compound

subordinate) Buying insurance with Nexus Mutual

All this is done in a decentralized manner, relying on the Metamask wallet that allows the user to keep his private keys in his possession.

How to use Uniswap:

We follow the following simplified explanation attached with pictures to understand how to use the Uniswap platform:

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• Install Web 3 wallet:

Metamask Wallet is a decentralized wallet in the form of an extension that can be downloaded and installed on Google Chrome:

• Login to Uniswap Beware of fishing spots.

Click Run Application.

All your trades are made on the page: swap

And create your own market on the page: pool

All of them can be accessed after launching the application.

• Select the Uniswap version, version 2 is advanced but an updated and relatively new option

• Click on the option to connect to the wallet and use Metamask.

• Accept contact with Uniswap

• The settings function has several features which include setting slip tolerance:

• Specify the input token, for example ETH:

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• Define the output currency:

You can also add an address where you want to send the digital currency after exchanging it:

• Click Add to send:

• Add a title:

• The swap and the output token will be in the Metamask wallet:

• If you want to be a market maker, go to Pool and add liquidity

• Select the coins you want to put in a pool:

Tips to get the best price:

• Find your trading pair on the site uniswap.info And look at the transactions,
• Wait for a big deal
• Place your order immediately when someone places a large order in the corresponding pair.
• For example, you want to exchange your Ethereum to SWAP, wait for a large SWAP request to come to Ethereum, and then place your order.
• Trade for WETH instead of ETH because it has lower fees and faster transactions.
• You can later exchange WETH for ETH 1:1 to save time and money.

First version v1 vs v2:

Uniswap currently has two versions running simultaneously.

Version 2 is the latest and contains some improvements over the first version.

Any digital currency based on the ERC20 standard can be exchanged directly with any other digital currency based on the same ERC20 standard.

V2 has a stronger Oracle, meaning it is more decentralized and tamper-resistant.

In the case of a series of transactions, the amount is not required to be paid in advance.

For example, even if you don’t have DAI, you can swap 1 ETH at a rate of 400 DAI on Uniswap, sell 1 ETH on another protocol for 420 DAI and return 400 DAI to the uni swap. Thus, you have earned 20 DAI.

Uniswap v2 offers smart contracts, and routing protocols transfer between ETH and WETH.

Core stores ERC 20 crypto balances internally.

The second version was written in a new programming language, Solidity, instead of Vyper.

The second version is compatible with many other standards such as ERC 777.

in conclusion:

Uniswap has everything the blockchain promises.

The platform offers true decentralized finance and there is no need to deal with any central trading platforms.

Meaning that the trader is the only guardian of his money.

Uniswap pays to provide liquidity.

Note that market making is still a risk and should be done very carefully after detailed consideration.

note:

Despite the advantages and advantages offered by the Uniswap platform, it allows the trading of any digital currency even if it is fraudulent, meaning that anyone can make ERC20 currency and put it to trade on this platform, which fraudsters often resort to to get users’ money, so it is necessary to be careful when approaching the platform and trading any currency.

Read also:

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