How To Build your own DeFi Protocol like Uniswap?

  zaara hary    October 30, 2020    646

 

DeFi - The recent term in the FinTech Industry has created a massive trend with the army of revolutionizing decentralized finance protocols and their tokens. In just a few months the queue of DeFi protocols continued to extend with different tokens, different DeFi Projects, and their Protocols with unique financial goals.

Uniswap - The Popular DeFi Protocol

Uniswap is a popular decentralized protocol built on Ethereum for swapping ERC 20 tokens without the need of buyers and sellers for the demand creation. Instead, the demand is set automatically using an equation and balances the value of assets accordingly based on demand.

Uniswap is an automated liquidity protocol and open-source software that anyone can check at any time.

In simple terms, Uniswap is a DeFi protocol that allows traders to swap ERC 20 and ETH tokens anytime without intermediaries.

Who Invented Uniswap Protocol?

This Uniswap Protocol was invented by Hayden Adams in November 2018. The underlying technology that inspired Adams to implement this protocol was first described by Ethereum Co-founder, Vitalik Buterin.

The equation behind the creation of Uniswap is X * Y = K, which is also known as Market Maker Equation.

What Uniswap Offers The World?

Uniswap, the best money making protocol offers complete control over your digital money. By Uniswap V1 and Uniswap V2, this DeFi protocol offers many trading features and functionalities to its users.

Here is the list of things that this DeFi based protocol offers its users.

Complete Control over your funds
No censorship for your assets and transactions
High level of Liquidity - Add or remove liquidity to the pool
Trustless way of exchanging ERC 20 tokens
Make You earn ETH through Yield Farming and Staking
Cent percentage Decentralized
Low cost for DEX Trading
Allows users to contribute liquidity to Uniswap Liquidity Pools
Allows for direct token exchange
These are the major benefits one can acquire by utilizing the Uniswap Protocol.

Advantages of Creating DeFi Protocol Like Uniswap

There are many DeFi protocols playing a significant role in the decentralized finance globe. Here let us look at the key advantages of creating your own DeFi protocol like Uniswap.

Permissionless Transactions, ie., No Man Power Involved
Immutable - Highly resistive to any modifications
Automated Price-Fixing - Presence of Smart Contracts act as AMM
Most Popular DEX Platform - With 95% of DEX trading volume
A high level of Liquidity drives more users for the protocol
Can provide huge income, as Uniswap-like protocol built on Ethereum and have Gas fees for each transaction.

How To Create Your Own DeFi Protocol Like Uniswap?

As Uniswap, a popular protocol is making huge revenue in recent days and being a note-worthy decentralized protocol in the DeFi space, many crypto entrepreneurs have an idea of launching their own protocol like Uniswap.

It's not so tough to create your own DeFi open-source protocol like Uniswap and it is one of the best business choices one can make in this time to become a millionaire. As Uniswap is getting more exposure after the launch of its own UNI token and accounts for about 38,000 daily active users who swap their tokens on Uniswap, it is the right time for anyone to launch their own DeFi protocol like Uniswap.

Contact DeFi development company, who can assist you with these DeFi related services.


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