25 June 2021
DEX is an automated system of crypto trading and is one of the most popular exchanges (DEX) out there due to the growing popularity of distributed funds (DeFi). Users can become pool fund providers to Uniswap by entering an equal amount of each basic token to replace other pool tokens.
Uniswap has two main features or features known as Swap and Pool:
Pool: Uniswap Pool allows users to benefit from cash donations. This is done by entering the tokens into a smart contract and you will receive the return of the tokens in the pool.
Is it a scam?
When exchanging coins at Uniswap, transactions may be at risk of failure. This is mainly due to 3 reasons.
- You paid very little for gas and the transaction took longer than the hard deadline made in the transaction.
- You specified the maximum amount you would like to pay for each token but the amount exceeds the maximum amount before the work is completed.
- There is not enough money in the pool.
In these cases, your transaction is "reversed" which means a reset as if the transaction has never happened, so you will not lose your money. Hence, it cannot really be said that Uniswap is a scam.
Counterfeit coins: Anyone can write their own tokens on Uniswap, so there are people out there who are writing illegal coins to Uniswap in the hope of being able to defraud people in sending their money for these coins. Consistent users, therefore, need to be extra careful in this regard.
How can you use consistency?
In Uniswap, click "Launch application" and "Connect to wallet". Select the MetaMask wallet (or any other wallet you want to connect with) and click on "Connect wallet". A pop-up window will appear showing your account, select the wallet and click on "Next" and "Connect". After that you are ready!
Token tab allows you to switch between ERC-20 tokens. On the Switch tab, select the number of ERC-20 tokens you want to exchange. Select the token you like to switch to by clicking the down arrow under “To”. A list will appear, and you can select the token you want to switch to, or if your token is not listed, you can paste the token address. Price tab will indicate the limit of how many tokens you can get after an exchange. To confirm, click "Swap".
You will be then redirected to a page confirming your change (see image below). But, there are a few things you need to look for here:
- The amount you exchange, and the amount you will receive
- Minimum amount sent: A guaranteed amount you will receive if the price drops while the transaction is being processed
- Price effect: The difference between the market price and the price ratio provided by Uniswap for the size of the trade
- Supplier fee: The amount you will pay to Uniswap. This is usually 0.03% of the transaction.
Once your exchange is verified, a pop-up window will appear (see image below) to confirm the price of electricity that will be paid for this exchange as it is an Ethereum transaction. Enter the fuel price you want to pay and click on “confirm”.
Once the transaction is complete, Uniswap will notify you and provide you with a link to Etherscan to show your transaction details. Here you can check how many tokens you actually exited on the exchange, as well as the number of transactions paid.
Activity failed: why does it happen and how can you avoid it?
DEX transactions may fail if input prices fall in such a way that they do not meet your pre-determined terms. When the transaction fails, all Ethereum submissions will be returned to you. So you don't lose your real money. However, Ethereum gas fee is deducted and is not refundable.
To avoid unsuccessful transactions, you can look for other people who are also trying to make the same transaction as you. To do this click “…” on Uniswap go to “Analytics” and search your target trading partners to see how many other people are trying to make the same exchange. If the price of the token you want to exchange increases with the price, you may want to increase the amount of gas bills. This will speed up your transaction and beat some of your competitors to lock the exchange price.
How to get fast transactions on a fixed transaction?
Speed up or speeding up your transactions by overpowering other competitors who are trying to process the same transaction. This will require paying more gas fees than others. To see how much gas fees you have to pay, check the Ethereum Gas Station and see the electricity prices for fast, standard and safe transactions. As a tip to get a quick transaction, it is ideal to pay 10% more than the recommended price for a quick transaction. You can enter the amount of electricity you wish to pay in the MetaMask popup window before confirming your transaction (see section above on how to use Uniswap's Swap feature).
Counterfeit coins at Uniswap: How to identify and avoid them?
As anyone can add crypto assets to Uniswap, there are a lot of scams or illegal coins on the Exchange. Cryptocurrency transactions cannot be fixed, so if you accidentally send your money to buy these coins or tokens, you will not be refunded. The logo and ticker of these counterfeit coins can look exactly like the real ones, so you need to be careful.
You can verify that a coin or token is real by checking it on Coingecko. To do this, look for the coin or token you want to exchange with Coingecko; at the bottom of the page, find and click on the Uniswap trading pair (see image on the left). After that you will be automatically redirected to Uniswap and the token will be imported (see image on the right).
One way to verify the authenticity of a token is to look at it in Etherscan (see below). Also in Coingecko, get the token and click on explorer ethercan.io. In the Etherscan window, you will be able to see the token contract number. Match this contract number with the address line number on your Uniswap web browser.
Check the token number on Etherscan by comparing it with the number in your Static browser.
Warning: Do not search for a token or address in Etherscan. Stay in touch with Etherscan via Coingecko or the official project website. This is because Etherscan itself allows you to claim all tokens and transactions on the blockchain, including fraudulent ones.
How to adjust slip tolerance?
Slippage in trading occurs when the price at which the order is completed ultimately differs from the price at the time you confirm the transaction. When trading at Uniswap, this is called "collision tolerance" and is expressed as a percentage.
In the case of coins or tokens whose prices are on the rise, there may be a lot of competition in processing and obtaining those tokens. In this case, you can increase the chances of your transaction being processed faster by increasing the tolerance of slippage. This will also avoid failed transactions.
To adjust the slippage tolerance, click on the gear icon in the top right corner of the Uniswap browser. There you can adjust your slippage tolerance. This will also reduce the minimum amount guaranteed to be sent to you. That is, it will increase the chances of your transaction but at the cost of acquiring a few cryptocurrency assets.
Mobile trading: How to use the fixed feature on your phone
The prices of cryptocurrency assets are constantly fluctuating, so serious traders who want to trade their cryptocurrency assets on the go. Uniswap allows you to connect to your mobile wallet. Just log in to Uniswap in your browser and follow the same steps as you would do on your PC. This allows the same wallet to appear on your PC and mobile phone. Uniswap supports the following mobile wallets: MetaMask, Trustwallet, Coinbase wallet, Rainbow, Argent, imToken, Pillar, Safe, Math, and Fortmatic.
For a new user experience, it is not the easiest thing to do because you need to perform multiple tasks between multiple windows. BUT it serves the purpose of being able to trade cryptocurrency assets on the go.
Pool Guide for Liquidity
Uniswap is a pool of various tokens living in smart contracts. Users can exchange tokens in pools using Ethereum as a channel. And a key feature of Uniswap is that anyone can create new exchange pairs in the credit pool of any token, unlike the central exchange where the trading pairs are already available.
First of all, be aware that you need to enter the same amount of Ethereum and token you want to participate with in the pool of cash. So, if I want to participate in the ETH / USDT pool, I will have to put the same amount of ETH and USDT in the pool at the same time. The funds you provide for these Liquidity Pool will be sold by other people so there will be fluctuations in the ETH and USDT rates you have.
This is because if someone wants to sell ETH for USDT, they will go into your savings pool and the USDT you give to the pool will be used to buy ETH- the whole idea is known as Automated Market Making (AMM). As a result, there will be a higher USDT rate compared to ETH in your pool. On the other hand, if someone wants to sell their ETH USDT, they will withdraw ETH and reduce your ETH currency. So the pool of money is like the average, when your ETH goes down by $ 10, your USDT should go down to $ 10.
So why do funders do this?
This is because they get Liquid Supplier Money from those who make swaps in their pool of money. As mentioned at the outset of this article, Uniswap charges 0.3% for each transaction. This 0.3% is actually divided equally among all the suppliers of the products of that pool according to their offerings.
What is Slippage and its significance?
Imagine you want to buy 10 bananas at the market and various banana sellers are selling them for $ 1 each. That costs $ 10 - it's easy. But what if there is a good news that bananas cure COVID-19 and the price goes up to $ 100 / banana? You now have to come out with $ 1,000 for 10 identical bananas. When you trade crypto, commodity volatility can create such a situation where the price paid differs from the quoted and expected price. Slippage expected % difference between these quoted and active prices.
Lowering the cost can also lead to an increase in slippage, which is why large orders tend to deal with higher slides. This is often a problem with market orders. When you place limited orders, your trade will only be done with or without a limit amount. But with market orders, you buy at a price where the market is willing to sell.
When you use Uniswap, you will see an interface like this:
Note both Slippage Tolerance and Price Impact settings. With Slippage Tolerance, you can set the maximum amount of price movement you can keep. Anything beyond that and your order will fail to perform. Uniswap default is 0.5%, but you can set it to any% you want.
The price touch gives you an idea of what smoothness is actually expected depending on the size of the order you place and what is happening in the market. This helps you get an idea of how much token you want to get once the trade has been issued.
Minor Receipt Identifier is the minimum number of tokens you will receive based on slippage tolerance (the worst case scenario - anything below and actions are automatically canceled).
The most common strategy is to break your order into smaller pieces and look \ wait for any conflicting transactions to keep the slippage low. But there are a few nuances to consider:
Each process has its own gas cost. Especially if gas costs are high when you do these many small tasks, you can lose more gas fees than profit in preventing price reductions.
Remember that any trade moves the price of two tokens exchanged between. These movements may be unimportant for tokens with large assets / market fluids and / or trading at low volume. But if you place a large token exchange order for a small market price or monetization, you can move the price even more. Likely, you make the next small exchange between the two assets more expensive for you.
With that in mind, there is no 100% “proper” way to approach the slide. It would be best if you look at how the price is currently changing, how liquid the asset is, how much your exchange volume reaches the asset and cash, and many strategic features that are relevant to your situation.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.