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How Uniswap is making huge revenue?

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zaara hary

If you’re unaware, Uniswap is a decentralized exchange built on Ethereum. It is an automated liquidity protocol on which no centralized entity can stop your trade. You can swap ERC20 tokens to your heart's content, unhindered. It’s open-source, too, with all the code on GitHub.

The biggest strength of cryptocurrency has been its power to decentralize finance. Yet, the industry has run into the arms of centralized middlemen, which serve as a point of convenience. But, they also service as a central point of failure. The future of cryptocurrency exchanges is decentralized exchanges. Uniswap has so far set the standard for how this should be achieved. Centralized exchanges are scared for their lives because of decentralized exchange technology like Uniswap, and they should be.

What Makes Uniswap so Popular DEX Platform Among Crypto Traders?

Initially, the cryptocurrency exchanges are carried out in a traditional way called centralized cryptocurrency exchanges, where exchanges of cryptos happen with the presence of central authority. As days passes, and the decentralized ledger technology blockchain started to sound high and there arose decentralized exchanges to short out the problems of centralized exchanges such as mismanagement, hacking and arbitrary fees.

Since, decentralized exchanges possess their own problem known as liquidity, which refers to a lack of money flow in an exchange that makes trading faster and efficient.
Here comes a DEX platform that tries to solve the liquidity problem of decentralized exchanges, Uniswap. The Uniswap protocol creates liquidity by allowing the exchange to swap Ethereum tokens without relying on buyers and sellers. This nature of eradicating liquidity issues makes Uniswap more popular among crypto people.

The other main distinct feature of Uniswap is its pricing mechanism known as the " Constant Product Market Maker Model", which allows users to add any token to Uniswap by funding it with an equivalent value of ERC 20 token or Ethereum.

You can also easily launch the DeFi based DEX platform with the help of Uniswap Clone Script and be the leading market maker in DeFi space.

What Is UNI Token?

UNI Token is the governance token of Uniswap protocol introduced in September 2020, without any ICO for token sales. Instead, it will distribute the tokens based on the below-set release schedule.

Up To now, Uniswap had offered 400 UNI to certain users who had used Uniswap Services previously, through running an airdrop.

Uniswap has decided to offer users a way to earn UNI tokens through skating tokens in particular liquidity pools in the near future.
As this UNI token is the Governance Token of Uniswap, any UNI holder can influence, vote for any development decisions on Uniswap protocol.

Any investor can buy this UNI token on any exchanges such as Binance, Coinbase, Huobi, Uniswap, and more. This token is experiencing fast success, by being in the top 50 coin listings soon after the launch.

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