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Should You Invest in Uniswap?

Discover the unique fundamentals of Uniswap, its unlikely start, and why it could continue to be a strong investment.


  • UNI
    Uniswap
  • Price
    $ 17.78
  • Change
    1.30%
  • Marketcap
    $ 8.08 B

Uniswap is currently hovering over the $25 mark. That makes for substantial gains for investors who got into UNI when it dropped below $2, but it's still far enough away from its all-time high of $44.92.

So, you might be wondering—is it too late to buy Uniswap? What are its use cases, and how secure of a platform is it?

We'll help you understand the fundamentals of Uniswap, show you how it differs from other crypto exchanges, and give you a background of its founder. By the time you finish reading this article, you'll have a solid grasp of whether Uniswap is worth your precious investment money.

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What is Uniswap (UNI)?

Uniswap is so much more than a pretty unicorn logo; it's a cryptocurrency exchange free of a centralized government. By using an automated liquidity protocol on the Ethereum blockchain, Uniswap lets users list tokens on their exchange for free. 

They also never ask for sensitive user data that can cause traders to lose their funds to data hacks.

Who Are the Founders of Uniswap?

Uniswap celebrated its third birthday on November 2, 2018. That may sound young to you, but we assure you that in the rapidly evolving crypto world, that's teetering on the verge of old.

Hayden Adams is the mastermind behind Uniswap. He has an interesting story after being laid off from his job as a mechanical engineer in July 2017. 

Thanks to a friend's encouragement, he taught himself how to use JavaScript, Solidity, and the fundamentals of Ethereum in just a couple of months.

Mere months after that, Adams built Uniswap, complete with a smart contract and website. He then went on to participate in conferences, including Devcon 3 and NYC Mesh. 

Needless to say, he soon grew his approximately 200 Twitter following to more than 178,000 on his personal account and nearly 700,000 on his official Uniswap page.

Oh, did we mention that the job he got laid off from was his first job out of college?  If his rapid success since then isn't inspiring, we don't know what is.

How Many Uniswap (UNI) Coins Are in Circulation?

There are currently 520 million Uniswap coins in circulation. The project has a total coin supply of 1 billion.

Because Uniswap doesn't rely on buyers and sellers to create liquidity, the liquidity comes from its ability to allow users to exchange their UNI (ECR-20 coins that are Uniswap's native token). 

So, if you're interested in "mining" Uniswap, what you'll actually be doing is yield farming.

Yield farming is the concept of giving a decentralized exchange like Uniswap permission to lock up your tokens for a set amount of time. Your tokens then go into a liquidity pool, and you'll receive rewards in the form of liquidity tokens for your contribution. 

You'll also receive a commission on the fees that transaction senders pay. Needless to say, if you plan on holding Uniswap for the long term, participating in yield farming is an excellent way to increase your stash of UNI.

How is Uniswap Network Secured?

The UNI token is crucial for securing the Uniswap network. It's a governance token that allows holders to vote on the future of the project. 

Because of its decentralized nature and this token governance system, the project doesn't have to worry about people with poor intentions manipulating the voting system.

As a result, the chances of an individual or group of people voting on a harmful platform upgrade or change is next to none.

While using centralized and decentralized cryptocurrency exchanges comes with risks, Uniswap has an excellent track record of allowing users to perform their transactions safely. 

Much of this is thanks to it using the Ethereum blockchain, which is notorious for its top-of-the-line security. Furthermore, as a decentralized platform, Uniswap doesn't hold your funds on a central server. 

Therefore, there's less incentive for hackers to break into the exchange.

That said, Uniswap isn't immune to hacks. But few cryptocurrency exchanges are—or grocery stores, malls, and any other place where money flows, for that matter.

So, most Uniswap users view using the platform as well worth the minimal risk of someone hacking the exchange.

What Makes Uniswap Unique?

Uniswap is unique because the entire smart contract process takes place on the blockchain. Furthermore, there's never a point in which a centralized exchange gets involved, and the project's founder doesn't collect any fees.

Other items that set Uniswap apart from its competitors include:

  • No limit order book
  • An algorithm determines the price of the UNI token
  • Low liquidity is never an issue
  • Creating expiring orders so that miners can't wait to process transactions when the price changes in their favor

Furthermore, Uniswap makes it expensive for traders to make large transactions. That helps avoid massive price swings that can happen when crypto whales (people who control a large amount of a cryptocurrency) buy or sell. 

In other words, Uniswap helps its users get more consistent and fair pricing for their trades. It can do this by creating a liquidity pool on the blockchain, which helps "patch up" the issue of big gaps between the bid and ask orders.

Uniswap benefits the blockchain because users can exchange their tokens without jumping through hoops with an intermediary. They also don't have to pay platform fees, so it serves as a kind of "public welfare" system on the blockchain.

Uniswap Alternatives

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Should I Invest in Uniswap?

Uniswap is a leading decentralized exchange in the crypto space with more than 2.5 million users. 

Although it had a seemingly quick beginning, its founder Hayden Adams addressed pain points in the cryptocurrency exchange space that encourages users to continue gravitating to his platform.

If you believe the decentralized cryptocurrency world will continue to boom, investing in Uniswap could be a lucrative decision. Furthermore, yield farming UNI can earn you even more tokens, and its robust security offers peace of mind.

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