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What is Uniswap Liquidity (Uniswap Liquidity Mining Guide)

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What is Uniswap Liquidity? Uniswap is a decentralized exchange (DEX) that facili

What is Uniswap Liquidity (Uniswap Liquidity Mining Guide)

What is Uniswap Liquidity? Uniswap is a decentralized exchange (DEX) that facilitates token trading based on Ethereum ERC-20 tokens. On Uniswap, users can freely add, withdraw, or modify any asset.

By aggregating liquidity on Uniswap into a centralized price range, everyone can seamlessly exchange all assets and receive rewards, enabling fast and cost-effective transactions, while minimizing fraudulent behavior and slippage. The total supply of UNI is 10 billion, with 10% allocated for rewarding LPs and long-term participants in the protocol, and the remaining 8% allocated to future users of the protocol.

Uniswap Liquidity Mining Guide

Editor’s note: This article is from Xiaozha’s Talk (ID: xiaonazha88) and is authorized by Odaily Planet Daily for reprint.

On Uniswap, users earn UNI liquidity mining rewards by depositing assets such as ETH and USDC and then staking these tokens into decentralized exchanges for trading and mining.

To help everyone better understand how to participate in Uniswap liquidity pool mining, let’s first understand what liquidity mining is. First, what is Uniswap? Currently, popular DeFi protocols include UniSwap (formerly Mdex) and Curve (formerly Kava).

According to official introductions, UniSwap has integrated various protocols such as UniSwap-V1, UniLend, Balancer, and Sushiswap.

UniSwap is a smart contract-based platform that enables the exchange of any ERC-20 tokens, such as COMP and WBTC; while Compound is a liquidity-providing financial application.

From a technical perspective, it is a type of automated market maker (AMM) similar to the Ethereum network, but without smart contract support. Therefore, the system allows users to transfer value between decentralized exchanges or DEXs using their funds.

Second, how to take advantage of the incentives on Uniswap? First, you need to know how to use Uniswap liquidity. If you want to short on Uniswap or earn income, you need a liquidity manager (staking your UNI to earn LP fees), a trader/developer toolkit (such as a Github link), and some other tools (such as Etherscan, CoinbaseWallet, and DappRadar) to obtain the corresponding rewards. Then mortgage your UNI to someone to create a new liquidity position.

Third, why is UNI considered the best project? I think it is mainly because UNI is one of the most popular governance tokens of UniSwap. If the price of UNI rises rapidly and is adopted as the core token of the protocol, it is worth paying attention to the future development of UNI.

4. Does UNI have the best price mechanism? This could mean that the price of UNI could skyrocket to over $100,000 and potentially reach $50 or even higher. However, it is crucial to make investors believe in this: will this price level last? Because once the UNI price starts to rise, it will have an impact on Uniswap holders.

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