If you use Ethereum wallets, it is possible that you have already had the possibility of making "swaps" with your tokens, that is to say (to put it simply) to exchange your tokens with other Ethereum tokens, quickly and with very little cost. These wallets do not necessarily develop their own swap methods, but as often in the ecosystem they use decentralized protocols. Today I present to you Uniswap, one of the protocols that allows the automatic exchange of tokens on Ethereum.
Uniswap :
Uniswap is therefore a protocol open to all Ethereum users to allow token swaps. Based on smart-contracts, Uniswap's main objective is to guarantee maximum liquidity for these users. As such, and we will see it more particularly in the part on the operation of swaps, Uniswap allows the exchange via a pair (BAT / ETH for example), but can also carry out several exchanges to carry out swaps with the maximum liquidity. . Indeed, knowing that each swap has funds from the token as well as funds in ethers, it is possible to directly convert specific tokens to ether and carry out a second exchange. This therefore allows for example to swap two ERC20 tokens between them. Originally developed by Hayden Adams as a study project to improve his Solidity skills, the project subsequently received funding from the Ethereum Foundation. This has therefore made it possible to further develop and make accessible to users the protocol that we know.
The benefits of using Uniswap :
If you are hesitant to use Uniswap here are some value propositions from the protocol that may change your mind. First of all, using Uniswap allows you to trade without trusted third parties. While some DeFi services seem somewhat obscure, it's very transparent in its simplicity. Exchange pairs can be set up easily using smart-contracts available to everyone. Uniswap is a nonprofit protocol and the fees only go to users providing liquidity to the system. This allows users to pay very low fees, and therefore perform transactions at low cost compared to other decentralized exchanges.
Conclusion :
So much for the presentation of the decentralized Ethereum exchange protocol Uniswap, a major player in the ecosystem of decentralized nonprofit finance that allows exchanges to be carried out at lower costs for users.