Quote from Heatman on October 29, 2023, 4:54 am

According to the latest data from Dune, compiled by Odaily, the front-end transaction fee revenue of decentralized exchange Uniswap has reached a major milestone, surpassing half a million dollars and currently standing at US$539,053.

 

Earlier this month, Uniswap Labs made an announcement that it would introduce a 0.15% exchange (swap) fee for certain tokens within its web application and wallet starting October 17. The specific tokens subject to this fee include significant cryptocurrencies like Ethereum (ETH), USD Coin (USDC), Wrapped Ethereum (WETH), Tether (USDT), DAI, Wrapped Bitcoin (WBTC), and lesser-known tokens like agEUR, GUSD, LUSD, EUROC, XSGD.

 

The emergence of decentralized exchange platforms has been important to the development of the crypto sector. It allows traders to engage in the crypto market securely without having to hand over control of their funds to a centralized party. Besides crypto trading, decentralized exchange platforms are also enabling the faster launch of Initial Exchange Offerings. One of the most interesting decentralized platforms to emerge in the recent past that supports IEOs is Uniswap.

 

Disclaimer: Decentralized exchanges are not regulated trading platforms. The purpose of this article is to describe the technical workings of the Uniswap decentralized exchange. All the information in the article is provided with the express purpose of the information. It should not be construed as the basis for listing or investment advice.

 

Uniswap is a set of computer programs that are built into the Ethereum program. These programs allow users of the blockchain to conduct decentralized token swaps. When using the Uniswap platform, users can Exchange their Ethereum tokens without relying on a third party to hold on their tokens. The Uniswap platform also provides users a way to earn via liquidity pools. Users can lend their tokens to these liquidity pools and earn a fee.

Uniswap’s unique model has proven so popular with crypto traders that trading volume on Uniswap surpassed that of Coinbase on September 2, 2020. 

How to Trade on Uniswap

Uniswap was created as an open-source protocol. It means that anyone can create frontend applications for it. However, the popular one is https://uniswap.exchange. To use the exchange, you can follow these simple steps:

 

Ensure you have an Ethereum-compatible wallet such as MetaMask

 

Visit the Uniswap interface

 

Select the token you want to acquire

 

Pick the token you wish to exchange it for

 

Click “Swap”

 

A Pop-Up window with a preview of the transaction will appear

 

Confirm the transaction request in your crypto wallet

Wait for the transaction to be registered on the Ethereum blockchain

Conducting an IEO via Uniswap

If you are planning to launch a crypto-based project, one of the ways to do it is by conducting an IEO. However, the reality of the current crypto world is that you need to do it via a centralized crypto exchange.

 

For projects seeking an alternative for holding CEOs, there is now an alternative.

A Simple Guide On Holding An IEO

The simple guidelines below demonstrate how to conduct an IEO via Uniswap.

 

Before listing on Uniswap, it is important to have the following things to avoid any delays:

 

An Ethereum compatible wallet such as MetaMask

 

ETH, which will cover the network fee and provide liquidity for the token

 

The address of the token, which can be retrieved from a block explorer

 

Steps

1. The first step is to unlock the wallet and connect it to Uniswap

 

Visit https://uniswap.exchange

 

When the MetaMask notification popup appears, click on confirm. It is now connected to Uniswap

 

2. Navigate to the “Pool” menu and click on “+ Create Pool”

3. In the screen that appears, you will need to choose a complimentary token that will provide liquidity. For this example, the token is ETH. When the MetaMask popup notification appears, click “Confirm”

 

4. In the token selection, paste the address of the token and click “Create Pool.” At this point, you need to offer a counter value for the tokens. It will be used to determine how many tokens one can get for each ETH token. In short, you are creating the Initial Exchange Offering (IEO) price.

 

5. Once you are done, click on “Approve (token’s name)”

 

 When the MetaMask popup notification appears, click “Confirm”

 

6. All that remains is to create a pool and then click “Supply” to confirm the transactions with the parameters you entered previously

 

If you wanted to hold a $1M token sale, you could set aside a set percentage of tokens and then fund the liquidity pool with ETH of a given value. The goal would be to ensure that the initial price of the tokens based on the IEO target would be achieved based on the amount of ETH and the IEO token supplied.

The $0.25 would be the initial price offering of the tokens. It would imply that the total market cap of the tokens would be around $25 million. From there, it would be up to market forces to set the prices. Consequently, the team would still need to do the hard work of ensuring they market the IEO to ensure there is enough demand for the tokens to help them raise funds.

 

When the MetaMask popup notification appears, click “Confirm”

 

Now visit the “Swap” section on Uniswap and paste the contract of the token to start trading.

 

Please note that as the first liquidity provider the ratio of tokens that you add will set the price of the pool. 

 

You will need to promote the sale aggressively to get people to purchase tokens in your project.