Uniswap: Breakdown of Features, Fees with UniChain

Explore the features, fees, Unichain and Uniswap V4 of the pioneer of Defi platforms.

Frontier of DeFi platform

Uniswap DEX is the simplest and most user-friendly DeFi platform than any other. It is like a good pal for beginners who want to practice swapping tokens.

Core Features

Network

• Uniswap runs on the Ethereum Blockchain network. Ethereum Blockchain can be utilized for many applications just beyond transactions.
• Its introduction to smart contracts is notable. It expands to decentralized finance concepts.

Fees

• It provides a fee of 0.3% for easy swapping.
• Liquidity providers earn this fee based on their liquidity contributions.
• Swapping fees are added directly to liquidity reserves. The value of liquidity tokens are increased by this.

Governance

• Uniswap DEX has its governance token UNI. With this, the users can vote in the voting forum.
• Users have a say in the platform’s decisions by voting. This token functions similarly to ERC-20 tokens.

Performance

The network faces congestion during peak hours. So, the transaction speed is slower when compared to other platforms.

Unique Features

NFT Marketplace

The liquidity positions are represented here as NFTs. It gives users unique positions according to their chosen price ranges and strategies.

V3 and V4

• V3 is the last-operated version. In this version, the Uniswap debuted concentrated liquidity. It lets providers target specific price ranges instead of offering liquidity throughout the whole range.
• V4 is the current version of the Uniswap DeFi platform. Uniswap V4 focuses on making the liquidity pools customizable. It also works on lowering the gas fees.
• After the launch of V4 Uniswap’s reputation and TVL has reached its zenith.

UniChain

By creating the quickest and most affordable Layer 2 network for cross-chain liquidity, Unichain is transforming DeFi. It was created to bring disparate blockchain ecosystems together and serves as a platform for traders and liquidity providers to access smooth, effective markets.

Before the launch of Unichain, Uniswap was so underrated because of its high gas fees and low transaction speed. And this launch of layer-2 network, solved all the criticisms it’s addressed before. Now, nobody can no longer say Uniswap is slow and expensive.

Yet, we’re expecting to see more and more advancements in the DeFi arena like Uniswap V4 and many more.

If you’re obsessed with more dex platforms like PancakeSwap, Sushiswap, then stay tuned with me.

Uniswap: Breakdown of Features, Fees with UniChain was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.