Uniswap allows trustless trading, like many other DEXes but here is why it's the ultimate one and why ponzis trading there are so hot right now.
It allows you to become a market maker without you having to do anything other than providing tokens and ETH, and get rewarded for it.
Let take a practical example:
Let's say you have 1ETH and 1ETH worth of XIO - all you have to do is go in the "pool" tab, chose the amount of tokens you wanna send there and you're good to go. Now Uniswap will use your liquidity to automatically place bids and asks like a market maker usually does. When a buyer comes in, he taps into the global XIO pool and throws more ETH into it in exchange, building automatically more support and when a seller comes in he does the opposite, re-establishing balance.. but allowing you to get return off of these trades in the meantime as well as a share of the flat 0.3% trading fee.. the share being proportional to your % of the pool owned
But consider the following: let's say the golden bull run starts. Now a lot more people want to buy than sell and the liquidity drains up. Price rises and for the same Dollarinos, buyers get less XIO.
Doesn't that also mean you have less XIO at the end?
Colton Brooks
yes you can actually lose money by providing liquidity and not having the fees make it up.
I just discovered SOCKS (unisocks). Kind of humorous, check it out unisocks.exchange/
You can buy these expensive socks. Maybe the appreciate in value too. We've become afgani basket weaving and sock trading forum
Aaron Rogers
Buyers only market doesn't exist especially if people buy too much at the same time they suffer from big spread. So it should balance itself, also somehow will help you take profits automatically if there's simply too much buyers.. a thing some people have trouble to do usually.
So yesterday, there was a big influx of buyers on XIO, I'm staking in the pool and I actually came out great. In fact the pool reached an ATH in profitability on that day
Henry Sanders
So is it best to provide liquidity if you expect a crab market not a strongly moving market?
I thought about it bug cannot really understand when it is a good vs bad idea to be a provider there.
Aaron Scott
What's the difference with say forkdelta?
I don't get this 0.3% thang
Btc guy here I hate ether and vitalik the betrayer
Zachary Moore
As much as I hate ETH too, I gotta admit that Uniswap is pretty fucking cool and I hope it gets ported to Bitcoin somehow.
The 0.3 flat fee is the taker fee that buyers/sellers will pay
