In the past, tracking Uniswap and other DEXes has been a complicated process. First, there is the complex setup to become a trader in ETH. Then there is the rapid growth in the DeFi space that has made it time-consuming and difficult to track every asset across multiple platforms.
Dexfolio's Uniswap tracker app aims to streamline this convoluted process by providing a one-stop solution to solve the difficulties currently inherent in tracking portfolios.
But first, a look at what Uniswap does.
Uniswap is the largest of the decentralized finance platforms in the crypto world. Any trader can list tokens or become a liquidity provider without complex registration processes or large fees. It is seen as a community or public tool for trading tokens without platform fees or third party involvement. The rewards are plentiful, but trading in this manner also carries higher risks.
At its launch in 2018, Uniswap became the first of the decentralized exchanges to utilize an automated market maker system. In centralized exchanges, third parties are required to monitor data and execute trades, but DeFi exchanges eradicate the need for middlemen.
In simple terms, this means that transactions are carried out directly between traders without the need for a third party to be involved. An example would be buying a new car with cash money instead of using a loan or a bank transaction. The only people involved are the buyer and the seller.
Autonomous protocols knows as Automated Market Makers (AMM) have coded instructions already built into their protocols to govern transactions. This means that non-custodial wallets (where private users hold the keys to the wallet) use smart contracts to define asset prices and provide liquidity. Any trader, regardless of net worth, is free to contribute to liquidity pools as long as the smart contract protocol conditions are met.
A liquidity pool is a crucial part of the DeFi ecosystem. It enables investors to trade and receive a return on their investment. It is the trading arm of a DeFi exchange, being made up of tokens locked in by smart contracts. Its role is to increase marketplace liquidity by giving access to participants. Due to the low eligibility requirements, it is easy for users to participate in providing liquidity to the pool and finance the purchase of token pairs.
A portfolio tracker app is crucial for beginners and experienced traders alike. Due to the rapid daily changes across the crypto landscape, and DeFi ecosystems in particular, swift access to data is essential. Historically, tracker apps have been plagued by cumbersome access to data and poor user experience. Beginners have often found them confusing and difficult to use.
Back to what all this means for Dexfolio's app and how it can make this process easier.
The Dexfolio team wanted to create a versatile app that would address inherent problems with the current tools. Traders can connect unlimited wallets to Uniswap and other DEXes, and use Dexfolio's flagship feature, its intelligent price alert system to monitor coins, token prices, gas fees, market movements, and other important information.
Extensive community consultation has seen Dexfolio focus on an app that is mobile-first, makes it easy for beginners to explore the market, facilitate token investments and other transactions, and access other pertinent DeFi data with one tap. From liquidity pool data to swap information, users get just what they need without extra functionality that creates unnecessary complexity.
The Uniswap protocol is governed by a decentralized community, and anyone can participate in its governance. However, its headquarters are US based.
Participants and their delegates must hold UNI tokens to participate.
As a decentralized exchange, Uniswap has no control over individuals' DeFi assets. That means that the responsibility lies with the user to ensure error-free trading and activity. There is no insurance and no way of recovering funds lost through user error.
That said, to date there have been no major security breaches, and no reports of loss due to platform malfunction. Vast numbers of traders have used the platform with no problems, which makes it one of the safest DEXes to use.
In short, yes. Users can legally use Uniswap to conduct DeFi activity in the US and in other countries.
In simple terms, a channel provides a means of communication between traders, with transactions as the medium. This allows multiple exchanges to take place between two parties without clogging up the chain with individual events. Channels are off-chain and private, with transactions conducted anonymously.
Channels have a limited lifespan, and once they have closed, the transaction history within them becomes an official part of the chain data.
