Uniswap Price: UNI Live Price Chart, Market Cap & News Today | CoinGecko

What is UNI?

UNI is the governance token for Uniswap. UNI was introduced on 16th September 2020 through a retrospective airdrop to users who have interacted with the protocol either by swapping tokens or by providing liquidity.

The UNI token allows token holders to participate in the governance of the protocol. Key decisions such as usage of the treasury or future upgrades can be decided through a governance vote.

What is Uniswap?

Uniswap is a decentralized exchange (DEX) that makes it easy for users to swap an ERC-20 token for another ERC-20 token without the need of a centralized intermediary. With a DEX, traders do not have to deposit their tokens on an exchange and be exposed to the security risks of a centralized exchange. 

Users just need an Ethereum wallet like Metamask and they can immediately start swapping tokens. Users can then swap tokens directly without the need of an orderbook. This works using an Automated Market Maker (AMM) where Liquidity Providers (LP) deposit tokens into the smart contract and this liquidity then provides a price quote to traders without relying on any professional market makers. Liquidity Providers are compensated with a 0.3% trading fee for providing liquidity on the protocol.

When was Uniswap founded?

The protocol was founded by Hayden Adams in 2018. Hayden was mainly inspired by the technology that was first described by Ethereum co-founder, Vitalik Buterin.

What is an Automated Market Maker (AMM)?

An AMM uses a pricing algorithm to price assets. Uniswap uses the “x*y = k” formula to price its assets. Within the formula, x represents the amount of one token in the liquidity pool, y is the amount of the other asset and k is a fixed constant. In Uniswap, the value of both assets constantly remains at a ratio of 50:50.

Uniswap popularized the AMM model and other crypto protocols started utilizing the AMM due to its innovative and decentralized features. However, one of the biggest setbacks for the AMM model is impermanent loss.

Impermanent loss is the opportunity cost of contributing two crypto assets into a liquidity pool instead of holding the two crypto assets separately outside the liquidity pool. Impermanent loss occurs when the price of one token rises or falls relative to the other. The larger the change, the larger the impermanent loss will be.

What is UNI’s Price Prediction?

Currently, the 0.3% trading fees do not accrue to UNI token holders – all trading fees currently only accrue to Liquidity Providers. With the protocol doing over $1 billion of daily trading volume, experts are speculating that the price of UNI will be based on the potential return made through fees, should at some point governance decide to enable that.

Where can you buy Uniswap?

UNI tokens can be traded on centralized crypto exchanges. The most popular exchange to buy and trade Uniswap is XT.COM, where the most active trading pair UNI/USDT has a trading volume of $708,965.55 in the last 24 hours. Other popular options include Bitunix and OrangeX.

What is the daily trading volume of Uniswap (UNI)?

The trading volume of Uniswap (UNI) is $157,085,977.44 in the last 24 hours, representing a -35.70% decrease from one day ago and signalling a recent fall in market activity.

What is the all-time high for Uniswap (UNI)?

The highest price paid for Uniswap (UNI) is BTC0.0008427, which was recorded on May 03, 2021 (almost 3 years). Comparatively, the current price is -75.00% lower than the all-time high price.