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Information about Uniswap (UNI)
Uniswap is a decentralized swap protocol built on the Ethereum blockchain. To be more precise, it’s an automated liquidity protocol, with no order book or any centralized party required to execute trades. Uniswap allows users to transact without intermediaries, with a high degree of decentralization and censorship resistance. Currently, Uniswap is the most widely used decentralized application (dApp) globally to date.
Uniswap works on the Automated Market Maker (AMM) model—a type of smart contract that holds a reserve of liquidity (liquidity pool) that traders can trade in. The liquidity provider funds these reserves. Anyone can be a liquidity provider (LP), depositing the equivalent value of two tokens into the pool. In return, traders pay a fee to the pool, which is then distributed to liquidity providers according to their market share in the pool.
Liquidity providers create markets by depositing the equivalent value of two tokens, be it ETH and an ERC-20 token or two ERC-20 tokens. These pools are usually made up of stablecoins like DAI, USDC, or USDT, but this is not required. In return, liquidity providers receive “liquidity tokens,” representing their market share of the entire liquidity pool. These liquidity tokens can be exchanged for the market share they represent in the pool.
Thus, it can be understood that Uniswap has two main functions:
UNI is an ERC-20 token born to initiate and encourage community ownership and governance participation. The Uniswap (UNI) token launch also became a catalyst for the increase in the price of ETH. A total of 1 billion UNI tokens have been minted; the initial supply will be fully diluted over the next four years, with 60% allocated to community members (600,000,000 UNI). Currently, UNI is present on many prestigious global exchanges such as Binance, Coinbase Pro, OKEx, etc.
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Uniswap price is currently at 5.92 USD after gaining 12.8% this week. A notable transfer of 9 million UNI, valued at 53.91 million USD, has been made to Coinbase Prime, indicating potential for market volatility. Traders are advised to stay cautious.
With resistance identified at the 50-day EMA around 6.28 USD, UNI may face challenges. The Relative Strength Index shows fading bullish momentum, suggesting a possible bearish shift if it falls below neutral levels. Close monitoring is essential for future price movements.
As of April 22, 2025, Unichain has reached a TVL of 322.99 million USD, highlighting significant growth in the DeFi sector. This surge is bolstered by a successful UNI incentive program designed to attract liquidity.
Despite UNI’s price dropping by 2.53% recently, the strong demand for liquidity reflects market engagement. Increased trading volumes could enhance price stability and suggest future innovations in Unichain.
After the 2024 election, major cryptocurrency executives made notable donations to Donald Trump’s inauguration fund. Uniswap CEO Hayden Adams contributed over 245,000 USD, while Solana Labs and ConsenSys donated 1,000,000 USD and 100,000 USD respectively.
The SEC closed investigations into Uniswap and ConsenSys shortly after these donations, indicating a possible influence of these political contributions. The Trump-Vance Committee reported over 239 million USD in donations from various sources.
For the first time in history, dapps have surpassed blockchains in revenue generation, bringing in $1.8 billion against blockchains’ $1.4 billion in Q1 2024. This shift raises questions about the real value of blockchains without dapps.
Uniswap has launched its own chain, saving over $70 million in fees previously paid to Ethereum, showcasing a trend of customized solutions that can enhance user experiences. Experts predict that more applications will follow this model.
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