This post has been self-published on Youth Ki Awaaz by BlockchainX Tech. Just like them, anyone can publish on Youth Ki Awaaz.

Blockchain Technology: What Is Uniswap And How Does It Work?

More from BlockchainX Tech

What Is Uniswap And How Does It Work?

One of the most well-known decentralised exchange (DEX) protocols in the blockchain world is Uniswap, and it is no wonder because this protocol has become one of the largest DEXs in the crypto ecosystem with a blocked value that amounts to five billion dollars. With this, Uniswap has become one of the main opponents of centralised solutions and leaves behind the belief that this type of technology could not become truly viable.

But how has Uniswap achieved this? What technology is behind your design? This and much more you will know below.

What Is Uniswap?

Uniswap is a DEX (Decentralized EXchange or Decentralized Exchange), which allows you to exchange your cryptocurrencies for others using smart contracts on the Ethereum network. This fact already tells us one thing: Uniswap works with Ethereum ERC-20 tokens. Let us remember that an ERC-20 token is a type of standard token within Ethereum and of these types of tokens there is a great variety.

In fact, currently, there are more than 420,000 different ERC-20 tokens on Ethereum, which gives us an idea of the huge ecosystem that exists. It is precisely this point that led Uniswap to its immense success: there is a large community that needs this exchange functionality and if you can make money with it, all the better.

However, as Uniswap only works with ERC-20 tokens, it is severely limited in functionality. For example, you cannot make direct exchanges using other cryptos such as Bitcoin or Bitcoin Cash. To overcome this limitation, other projects have dedicated themselves to creating ERC-20 tokens that represent these other cryptocurrencies.

To do this, 1:1 anchored ERC-20 tokens are created with that specific crypto or using other means. A good example of this is RenBTC, where RenBTC is an ERC-20 token anchored 1:1 with the value of Bitcoin and guarded by a decentralised network of nodes. Thus, each RenBTC token can be exchanged 1:1 with BTC (except for a small commission) and you are sure that it will always be like that.

Thanks to this, something exceptional is achieved, allowing Uniswap to carry out exchanges that can then be transferred to other cryptocurrencies. And, although the exchange is not direct, this offers a unique range of opportunities, which not only Uniswap has taken advantage of. In fact, it is thanks to things like these that the DeFi or Decentralized Finance ecosystem has not stopped growing from 2019 to the present day.

How Does Uniswap Work?

Today, Uniswap is much more than just a DEX. First of all, we have that Uniswap was created as an AMM protocol (Automated Market Maker or Automated Market Maker). This means that Uniswap is able to allow its users to create markets from which third parties can benefit. The creation of these markets is self-sustaining, allowing the protocol to generate income that serves to incentivise the injection of liquidity in exchange for a small interest to its investors.

They are the well-known pools, where investors inject tokens to increase its liquidity, and as it is used by third parties, these transactions generate commissions that are used to maintain the protocol and give rewards to investors in said pool. It is, in short, the germ of the well-known liquidity mining.

credit: QuoteInspector.com https://www.quoteinspector.com/images/bitcoin/bitcoin-pile-coins/

Secondly, the creation of these pools allows the protocol to amass liquidity to allow rapid exchange of assets. This exchange system is controlled by smart contracts (like the rest of the Uniswap protocol functions), giving rise to its DEX functionalities. And finally, building around these two functions a complex system of rewards, decentralised governance and complementary functions within the increasingly relevant DeFi ecosystem.

What Is The UNI Or Uniswap Coin Token?

The arrival of competitors like SushiSwap (a Uniswap clone), with its application of yield farming thanks to its SUSHI token, made the SushiSwap community respond, and the best response was to launch its own token: the UNI token or Uniswap Coin. Thus, on September 16, 2020, Uniswap announced the launch of this new token designed on three fundamental points:

  • Offer a new reward mechanism for participating in Uniswap pools and services.
  • Reward those who believed in the project from the beginning.
  • Allow a more Decentralized on-chain governance system.

With that idea in mind, the project created in its genesis the issuance of one billion UNI tokens that will be accessible within the next four years (until 2024). These tokens would be distributed as follows:

  • 60.00% to members of the Uniswap community (600,000,000 UNI)
  • 21.266% for team members and future employees with a vesting period of 4 years (212,660,000 UNI)
  • 18.044% to investors with a period of acquisition of rights of 4 years (180,440,000 UNI)
  • 0.69% to advisers (6,900,000 UNI)

After four years, the UNI token will continue its issuance with a perpetual inflation rate of 2% per year. The idea is that the system allows continuing rewarding those who participate in the growth of Uniswap as an ecosystem.

However, UNI would also create a treasure trove for the project, so that the necessary funds will be available to further develop Uniswap. In that sense, 43% of the community tokens would be retained for this effort. This could create taxpayer grants, community initiatives, liquidity mining and other programmes that drive Uniswap’s development. This 43% will be distributed over that four-year period as follows:

  • First Year: 172,000,000 UNI 40%
  • Second Year: 129,000,000 UNI 30%
  • Third Year: 86,000,000 of UNI 20%.
  • Fourth Year: 43,000,000 UNI 10%

This ensures that the community will always be rewarded for its efforts.

You must be to comment.

More from BlockchainX Tech

Similar Posts

By Saumya Rastogi

By Ehsan Mohammadi

By shakeel ahmad

Wondering what to write about?

Here are some topics to get you started

Share your details to download the report.









We promise not to spam or send irrelevant information.

Share your details to download the report.









We promise not to spam or send irrelevant information.

An ambassador and trained facilitator under Eco Femme (a social enterprise working towards menstrual health in south India), Sanjina is also an active member of the MHM Collective- India and Menstrual Health Alliance- India. She has conducted Menstrual Health sessions in multiple government schools adopted by Rotary District 3240 as part of their WinS project in rural Bengal. She has also delivered training of trainers on SRHR, gender, sexuality and Menstruation for Tomorrow’s Foundation, Vikramshila Education Resource Society, Nirdhan trust and Micro Finance, Tollygunj Women In Need, Paint It Red in Kolkata.

Now as an MH Fellow with YKA, she’s expanding her impressive scope of work further by launching a campaign to facilitate the process of ensuring better menstrual health and SRH services for women residing in correctional homes in West Bengal. The campaign will entail an independent study to take stalk of the present conditions of MHM in correctional homes across the state and use its findings to build public support and political will to take the necessary action.

Saurabh has been associated with YKA as a user and has consistently been writing on the issue MHM and its intersectionality with other issues in the society. Now as an MHM Fellow with YKA, he’s launched the Right to Period campaign, which aims to ensure proper execution of MHM guidelines in Delhi’s schools.

The long-term aim of the campaign is to develop an open culture where menstruation is not treated as a taboo. The campaign also seeks to hold the schools accountable for their responsibilities as an important component in the implementation of MHM policies by making adequate sanitation infrastructure and knowledge of MHM available in school premises.

Read more about his campaign.

Harshita is a psychologist and works to support people with mental health issues, particularly adolescents who are survivors of violence. Associated with the Azadi Foundation in UP, Harshita became an MHM Fellow with YKA, with the aim of promoting better menstrual health.

Her campaign #MeriMarzi aims to promote menstrual health and wellness, hygiene and facilities for female sex workers in UP. She says, “Knowledge about natural body processes is a very basic human right. And for individuals whose occupation is providing sexual services, it becomes even more important.”

Meri Marzi aims to ensure sensitised, non-discriminatory health workers for the needs of female sex workers in the Suraksha Clinics under the UPSACS (Uttar Pradesh State AIDS Control Society) program by creating more dialogues and garnering public support for the cause of sex workers’ menstrual rights. The campaign will also ensure interventions with sex workers to clear misconceptions around overall hygiene management to ensure that results flow both ways.

Read more about her campaign.

MH Fellow Sabna comes with significant experience working with a range of development issues. A co-founder of Project Sakhi Saheli, which aims to combat period poverty and break menstrual taboos, Sabna has, in the past, worked on the issue of menstruation in urban slums of Delhi with women and adolescent girls. She and her team also released MenstraBook, with menstrastories and organised Menstra Tlk in the Delhi School of Social Work to create more conversations on menstruation.

With YKA MHM Fellow Vineet, Sabna launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society. As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Read more about her campaign. 

A student from Delhi School of Social work, Vineet is a part of Project Sakhi Saheli, an initiative by the students of Delhi school of Social Work to create awareness on Menstrual Health and combat Period Poverty. Along with MHM Action Fellow Sabna, Vineet launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society.

As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Find out more about the campaign here.

A native of Bhagalpur district – Bihar, Shalini Jha believes in equal rights for all genders and wants to work for a gender-equal and just society. In the past she’s had a year-long association as a community leader with Haiyya: Organise for Action’s Health Over Stigma campaign. She’s pursuing a Master’s in Literature with Ambedkar University, Delhi and as an MHM Fellow with YKA, recently launched ‘Project अल्हड़ (Alharh)’.

She says, “Bihar is ranked the lowest in India’s SDG Index 2019 for India. Hygienic and comfortable menstruation is a basic human right and sustainable development cannot be ensured if menstruators are deprived of their basic rights.” Project अल्हड़ (Alharh) aims to create a robust sensitised community in Bhagalpur to collectively spread awareness, break the taboo, debunk myths and initiate fearless conversations around menstruation. The campaign aims to reach at least 6000 adolescent girls from government and private schools in Baghalpur district in 2020.

Read more about the campaign here.

A psychologist and co-founder of a mental health NGO called Customize Cognition, Ritika forayed into the space of menstrual health and hygiene, sexual and reproductive healthcare and rights and gender equality as an MHM Fellow with YKA. She says, “The experience of working on MHM/SRHR and gender equality has been an enriching and eye-opening experience. I have learned what’s beneath the surface of the issue, be it awareness, lack of resources or disregard for trans men, who also menstruate.”

The Transmen-ses campaign aims to tackle the issue of silence and disregard for trans men’s menstruation needs, by mobilising gender sensitive health professionals and gender neutral restrooms in Lucknow.

Read more about the campaign here.

A Computer Science engineer by education, Nitisha started her career in the corporate sector, before realising she wanted to work in the development and social justice space. Since then, she has worked with Teach For India and Care India and is from the founding batch of Indian School of Development Management (ISDM), a one of its kind organisation creating leaders for the development sector through its experiential learning post graduate program.

As a Youth Ki Awaaz Menstrual Health Fellow, Nitisha has started Let’s Talk Period, a campaign to mobilise young people to switch to sustainable period products. She says, “80 lakh women in Delhi use non-biodegradable sanitary products, generate 3000 tonnes of menstrual waste, that takes 500-800 years to decompose; which in turn contributes to the health issues of all menstruators, increased burden of waste management on the city and harmful living environment for all citizens.

Let’s Talk Period aims to change this by

Find out more about her campaign here.

Share your details to download the report.









We promise not to spam or send irrelevant information.

A former Assistant Secretary with the Ministry of Women and Child Development in West Bengal for three months, Lakshmi Bhavya has been championing the cause of menstrual hygiene in her district. By associating herself with the Lalana Campaign, a holistic menstrual hygiene awareness campaign which is conducted by the Anahat NGO, Lakshmi has been slowly breaking taboos when it comes to periods and menstrual hygiene.

A Gender Rights Activist working with the tribal and marginalized communities in india, Srilekha is a PhD scholar working on understanding body and sexuality among tribal girls, to fill the gaps in research around indigenous women and their stories. Srilekha has worked extensively at the grassroots level with community based organisations, through several advocacy initiatives around Gender, Mental Health, Menstrual Hygiene and Sexual and Reproductive Health Rights (SRHR) for the indigenous in Jharkhand, over the last 6 years.

Srilekha has also contributed to sustainable livelihood projects and legal aid programs for survivors of sex trafficking. She has been conducting research based programs on maternal health, mental health, gender based violence, sex and sexuality. Her interest lies in conducting workshops for young people on life skills, feminism, gender and sexuality, trauma, resilience and interpersonal relationships.

A Guwahati-based college student pursuing her Masters in Tata Institute of Social Sciences, Bidisha started the #BleedwithDignity campaign on the technology platform Change.org, demanding that the Government of Assam install
biodegradable sanitary pad vending machines in all government schools across the state. Her petition on Change.org has already gathered support from over 90000 people and continues to grow.

Bidisha was selected in Change.org’s flagship program ‘She Creates Change’ having run successful online advocacy
campaigns, which were widely recognised. Through the #BleedwithDignity campaign; she organised and celebrated World Menstrual Hygiene Day, 2019 in Guwahati, Assam by hosting a wall mural by collaborating with local organisations. The initiative was widely covered by national and local media, and the mural was later inaugurated by the event’s chief guest Commissioner of Guwahati Municipal Corporation (GMC) Debeswar Malakar, IAS.

Sign up for the Youth Ki Awaaz Prime Ministerial Brief below