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What is UNI Token by Uniswap?

UNI Token is the governance token of Uniswap and was first introduced on September 17, 2020. The tokens were not sold in an ICO or any other token sale and will be distributed based on a set release date. 

Trade $UNI at LCX Exchange
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Who Created $UNI?

It provides its users with a simple web interface to enable swapping of various ERC-20 tokens. As of October 2020, Uniswap has $2.1 billion kept safe in its smart contracts. This amount accounts for 20% of all value kept secured in all DeFi applications. The daily trading volume of $263 million of Uniswap accounts for 95% of DEX trading. 

Uniswap was developed by  Hayden Adams, an Ethereum developer in 2018. Noah Zinsmeister and Dan Robinson, Ethereum developers have also made valuable contributions to the project.

How $UNI Works?

Uniswap allows anyone to submit any tokenpair at a ratio of 50/50 as a reserve. Trades are made in the absence of any middlemen against these token pairs. 

0.3% of every trade is awarded to the liquidity providers in proportion to the total amount of liquidity. Once the trade is executed, the fee is added to the liquidity pool which is redeemable for Liquidity providers when they take back their liquidity. 

In case of diverging prices on Uniswap from the outside market, arbitrageurs are incentivized to buy or sell the diverging tokens. This pushes the price toward the overall market price.

Benefits of $UNI

The token benefits the token holders by providing them with immediate ownership of:

  • Governance over Uniswap
  • Treasure of Community
  • Protocol fee switch (0.05% of the present 0.3% that is given to liquidity providers)
  • eth ENS
  • List of Uniswap 
  • SOCKS tokens

The Parameters for Governance over Uniswap are:

  • Provide 1% of total supply to be eligible for submitting a governance proposal
  • 4% to reach quorum
  • 7 day voting period
  • 2 day time lock delay

Uniswap (UNI) is also available at LCX Exchange. 

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