Buy Uniswap (UNI) - how to invest in Uniswap in Singapore

What is Uniswap?

Uniswap is an open-source protocol and non-custodial crypto-exchange that enables the secure exchange of Ethereum (ETH) and ERC-20 standard tokens without using the traditional order book model.

Uniswap combines tokens into smart contracts, creating liquidity pools. Platform participants can exchange assets, create new trading pairs and add tokens to the pools to earn commissions.

How to buy Uniswap cryptocurrency?
How to buy Uniswap cryptocurrency?

Who created Uniswap and when?

Developer Hayden Adams created the Uniswap protocol.

On 6 July 2017, Adams retired from Siemens, where he had worked as a mechanical engineer after graduating from college. Adams' friend Carl Flersch, who worked at the Ethereum Foundation, advised him to become a smart contract developer.

He spent the next two months learning the basics of Ethereum, Solidity and JavaScript, after which Carl suggested Adams implement an automated market maker mechanism (AMM).

Gnosis project developer Alan Liu was the first to consider creating market makers on Ethereum using the x*y=k equation. Liu's Gnosis colleague Martin Koppelman suggested the idea to Vitalik Buterin, who presented it in articles on his personal blog and the Reddit platform.

In August 2018, Adams received a $100,000 grant from the Ethereum Foundation to implement the concept.

Adams was assisted in creating Uniswap by Microsoft and Google developer Callil Capuozzo, programmers Uchiel Vilchis, Philip Dayan, Dan Robinson, Andy Milenius and others.

By March 2018, the developers had unveiled a demo version of Uniswap. Finally, on 2 November 2018, the full version of the protocol was launched.

Presenting Uniswap, Adams listed its main features:

  • No central token or platform commission. 
  • No special treatment for early investors, users or developers. 
  • The token listing is free. 
  • All features of the smart contract are open and can be improved.
Trading conditions for the purchase of Uniswap
Trading conditions for the purchase of Uniswap

How does Uniswap work?

The Uniswap protocol involves a series of smart contracts that allow users to trade directly on the Ethereum blockchain. Technically, it is a decentralised exchange (DEX).

Uniswap is a publicly available tool that distributes rewards to liquidity providers. Providers support the exchange by 'locking in' tokens, allowing other users to trade on the decentralised system.

The platform does not require registration or KYC and AML procedures. Only an Ethereum wallet like MetaMask is required. A distinctive feature of Uniswap is a mechanism called Constant Product Market Maker.

An Ethereum asset can be freely added to Uniswap by funding it with the equivalent value of ETH and an ERC-20 traded token. For example, if a user wants to exchange a Poop Token, they launch a new smart contract for Poop Token and create a liquidity pool with a $10 Poop Token and a $10 ETH.

Uniswap does not bind buyers and sellers to set the price of the Poop Token but uses an equation: x * y = k. In the equation, x and y represent the number of ETH and ERC-20 tokens available in the liquidity pool; k is a constant.

Based on the balance between ERC-20 and ETH tokens and between supply and demand, the equation calculates the price of a particular token.

Each token has its smart contract and liquidity pool. Any user can trade this coin or deposit funds into the liquidity pool, earning a 0.3% exchange fee.

If you are going to buy UNI, we recommend you read all the information you can find. In principle, this applies to all cryptocurrencies. 

Choosing a cryptocurrency
Choosing a cryptocurrency

How are Uniswap tokens created?

Whenever new tokens are added to the Uniswap liquidity pool, the user receives an ERC-20 standard 'pool token'. The pool tokens can be exchanged, moved and used in other decentralised applications.

When the funds become in demand, the pool tokens are burned. Thus, each pool token represents the user's share of the pool's total assets and a share of the pool's trading commission of 0.3%.

Characteristics of UNI

Uniswap (UNI) is a popular coin that ranks in the top 25 capitalisations. The number of holders in August 2021 was 264,914. More than 2.9 million transactions have been made so far. The essential characteristics are shown in the table:

PARAMETERS AS AT AUGUST 2021 COMMENT
Rating on CoinMarketCap  #11
Market capitalization  $17.7+ billion
Number of coins circulating in the market  611,597,887.43 (61%)
All-time low price  $0.419 (September 17, 2020)

Distinguishing features of Uniswap

Of course, distinguishing features are essential if you want to buy Uniswap or invest in Uniswap. Uniswap coin (UNI) is unique because of the following features:

  • The token is a management and voting tool in the system. Therefore, it is not needed for paying commissions (ETH is used for that), creating applications, etc. That is, its functionality is strictly limited.
  • The protocol was created. Then, only after more than two years, a native token was released, though it was not planned initially.
  • The standard of the coin: ERC-20. It was created in the Ethereum blockchain and is accepted by dozens of wallets because of this.
  • UNI is a native token of the protocol that acts as a decentralised exchange. According to CoinMarketCapUniswap, V3 is the 2nd most popular DEX. It accounts for 19.306% of market volume in August 2021.
  • Token trading is available on both CEX and DEX.
  • The project has received its first funding from the Ethereum Foundation.
Information about cryptocurrency Uniswap
Information about cryptocurrency Uniswap

Uniswap technology

The project's major development is the decentralised exchange Uniswap, which works in 3 versions simultaneously.

The protocol is 100% open, so programmers based on it can deploy, for example, price oracles.

Dozens of tools have already been created to simplify interaction with the protocol or develop new products.

SDKs have been released for the convenience of developers. Github Repo, Core Github Repo and NPM Package are available in version V3.

Liquidityfolio, Zapper, Zerion were launched to calculate commissions for LPs. In addition, to stop fake tokens from being added, a Token Lists system has been implemented. It is already integrated with CoinMarketCap, TCR, Coingecko.

Capitalisation: 22.34 billion.

Coin emission

Coin emission is another plus for cryptocurrency. 

The developers immediately set a maximum number of tokens issued: 1 billion. The circulating supply in August 2021 is about 61%. The creators also immediately stipulated that a perpetual inflation mechanism (2% per year) will be implemented in 4 years from the project's launch. The project will receive ongoing input and support from passive coin holders with this approach.

How is Uniswap evolving?

If you're planning to buy Uniswap in Singapore, you'll be pleased to know that the prospects for this cryptocurrency are huge. 

Although Uniswap was launched in November 2018, for a long time, the protocol has been behind centralised exchanges and, in the DeFi space, lending protocols like Maker. An essential factor in the project's success was the launch of an updated version of the platform.

In August 2020, a fork of Uniswap called SushiSwap took place: a protocol with the SUSHI control token emerged. In the first phase, the fork allowed existing Uniswap liquidity tokens to be placed in the protocol to generate revenue. In the second phase, the migration of funds to pools on SushiSwap began.

SushiSwap initially poached the lion's share of Uniswap users' funds, but it lost its liquidity as SUSHI token distribution declined. Uniswap's leadership strengthened with the release of the management token UNI, which was announced on 16 September.

Shortly after the launch of UNI, analyst firm Glassnode concluded that Uniswap's management tokens are not blocked in the smart contract and reside on regular Ethereum addresses, raising questions about the degree of decentralisation of the exchange.

Popular cryptocurrency
Popular cryptocurrency

Thanks to the implementation of UNI, the blockchain value (TVL) on Uniswap has not only returned to its previous values but has even exceeded them.

On 24 December 2020, Uniswap completed a third vote to approve the proposed changes for the first time: community representatives spoke out about the UNI token ecosystem grants program.

Funding is intended for small projects in the first phase, including hackathons. In the future, grants will be given to more substantial initiatives. Starting in 2021, organisers will begin accepting applications for event support in the form of rewards for participants. The wider community will be involved in decision-making.

On 5 May 2021, the third version of Uniswap was launched. It involves radically new features and concepts, including concentrated liquidity, limit range orders and multiple positions within a single pool. Notably, work on Uniswap v3 began even before the second version of the exchange.

The developers promised to implement the Optimism Level 2 solution soon after the release of the new version.

How to get UNI

Token holders cannot access classic PoW mining via farms. However, everyone who wants to can still profit by acting as a liquidity provider. Cryptocurrency can also be bought through an exchange or exchanger. Tokens are traded on popular centralised platforms such as Binance. 

But there are other ways to make money from cryptocurrency - trading, investing. One of the best tools is CFDs. 

Contracts for Difference (CFDs) are derivatives that allow investors to speculate on the rise or fall in the price of a particular financial instrument without owning the underlying asset. CFDs have grown in popularity in recent years. This financial instrument allows retail traders to invest in various assets, including currencies, shares, indices, and commodities over the internet, with minimal initial investment through leverage.

As CFDs are derivative instruments, the resulting gains are not subject to the taxes associated with traditional trading. Trading CFDs also allows investors to use higher leverage than trading traditional assets, which means less initial investment is required to open a position in the market. So if you want to invest in Uniswap in Singapore, this tool is perfect for this purpose. 

Register on the investment platform
Register on the investment platform

Conclusion

So, if you have already decided to invest in UNI, the first question you will face is "How to invest in cryptocurrency?" Proceed according to the following algorithm:

  • Decide on an investment amount. Remember that the price of cryptocurrencies is volatile. A decline can follow a prolonged rise. The possible returns are high, but so are the risks. So don't invest money in cryptocurrency that you are not prepared to lose.
  • Choose how you will become a crypto-token owner. 
  • Decide on a broker through which you will invest. 

Take action and make money. You will be successful! 

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