Coin Cloud has recently added a bunch of new options to our digital currency machines (DCMs). One that has been receiving a lot of attention is Uniswap, a decentralized exchange (DEX) that uses smart contracts on the Ethereum blockchain to trade tokens. It’s run by open-source software rather than an intermediary company that controls all funds. This makes transactions faster and more efficient than you’d find on a standard centralized crypto exchange (CCE).
You may be familiar with CCEs. They include Coinbase, Binance, Kraken and several other popular online crypto trading platforms. These sites generally offer more liquidity than DEXes, since you can usually initiate withdrawal of your funds at any given time, whereas with a DEX your crypto might be “locked” in the project. Also, you can usually spend your fiat at a CCE, while a DEX is designed to trade one digital currency or token for another.
But due to blockchain technology, a DEX is much more difficult to hack and has virtually no downtime. And unlike a CCE, it doesn’t require your banking info or personal identification data.
Uniswap brings liquidity to the decentralized process through user-provided funds locked into smart contracts. These collections of tokens are known as liquidity pools. Anybody can deposit a token pair to a smart contract and earn a percentage of the trading fee by enabling other users to buy and sell it.
So the liquidity pool providers are rewarded financially for lending their funds, and the traders benefit by being able to make fast token swaps. Reserves are automatically rebalanced after every trade.
The platform’s priorities are decentralization, security and censorship resistance. Uniswap specifically enables you to swap Ethereum-based ERC-20 tokens with each other. This includes Ether, Loom Network, Basic Attention Token, Decentraland, ChainLink and 0x Protocol. It also encompasses stablecoins like USD Coin, Paxos Gold, Tether and Dai, as well as decentralized finance (DeFi) tokens like Maker, Compound, Yearn Finance and Uniswap itself.
The Uniswap token (UNI) is a governance token for the Uniswap platform, which gives you voting rights on any changes to the protocol.
Of course, you need to own these tokens before you can swap them on a DEX. Luckily, all of these currencies are available on any Coin Cloud machine, so you can buy with cash at a DCM and trade at Uniswap.
Uniswap was launched in November 2018 by engineer and developer Hayden Adams, with the help of an Ethereum Foundation grant and other crypto enthusiasts he met along the way. While initially he was stumbling his way through the process, Adams discovered that a lot of people in the industry shared his vision of building a permissionless, decentralized financial system.
And yet, it needed to be explained in simple terms to potential users who would benefit from its model. By learning to communicate on the level of various demographics, Adams gathered a sizable following before official launch, and it snowballed from there.
Uniswap has grown to become one of the largest cryptocurrency exchanges by trading volume, and the #1 decentralized exchange. Yesterday, Adams tweeted that Uniswap “just became the first decentralized trading platform to process over $100b in volume – an exciting milestone for DeFi.”
To dip your toes in the DeFi waters, you can buy or sell UNI at Coin Cloud machines across the nation, as well as all the ERC-20 tokens mentioned above.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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