Also, there's no need to deposit funds into the exchange as you only need to connect your wallet to the exchange.Without your permission, Uniswap cannot withdraw from your wallet , and for each time you want to trade or make any deposit, your have to permit the transaction in your non-custodial wallet.We'll discuss a little bit of the technicals of Uniswap. LIQUIDITY For one to trade, there must be liquidity. Without liquidity, trading will be totally impossible. What's liquidity?Just think of it as that which allows you to buy low and sell high ...or sell high and buy low.

DeFi → Liquidity

...So for LIQUIDITY to be available, there must be people willing to buy at a particular price or willing to sell at a particular price.Now, you should ask yourself, "how's Uniswap thriving?" "How did they manage to survive till now?" From my little knowledge, mass adoption has not really occured because a lot of people are ignorant wile some are scared. This is where LPs come into the picture. As we see the need for LPs, we can't neglect the role of AMM in our dear Dex. LPs providers the liquidity needed in Uniswap. So they get tokens and they deposit it into liquidity pools.

Liquidity →Lps

Hence, z = 100,000 ÷ 900 That would be giving us 111.11 DAI That is to say that, we will be paying about 111.11 DAI for 900 ARBeth. If this doesn't make much sense to you, check this <a href="https://youtu.be/dIneNZTnFMw?si=oH-x6X-DHwwJ5vrV">video</a>.Stats about the <a href="https://t.co/zXTVdS8qDd">$UNI token</a>Total value locked (TVL) → $5,201,703,563 Circulating supply → 600,034,295 UNI Total supply → 1,000,000,000 UNI Max. supply (not given) Fully diluted market cap → $7,812,954,544

Inner peace.Thanks for reading

.... Of course, they're incentivised for their services.So, transactions fees paid in the dex foes to the liquidity providers. AMM takes the place of *order books* in our dexs.Order books are used in Cexs to record all buy and sells orders and they're updated I'm real time. This also helps to determine the prices of assets in Cexs. It is quite different in dexs. There's no need for an order book, but an AMM is utilised.This AMM is made up of a mathematical expression that is used to determine the prices value of tokens on Uniswap.

..And AMM

Dex? An AMM? LPs? Mathematical constants and variables?These are the terms you'd come across in your research about Uniswap. However, this doesn't count if you want to make practical use of this most prominent decentralized platform on the Ethereum chain. Bringing to you, Uniswap in it's totality.First off, What is Uniswap? Uniswap is a decentralized application built on the Ethereum Blockchain, that allows for the exchange of ERC-20 tokens without a middle man. ERC-20?It's a token standard for tokens on the Ethereum chain. Hopefully, we will learn more about token standards later on.

Intro.

However, understand that all tokens in the Ethereum Blockchain are governed by this standard. Any token that is not on the Ethereum Blockchain is not governed by this standard but governed by whatever token standard it's L1 Blockchain uses.To better grasp the purpose of Uniswap, we have to look at TradFi. TradFi means traditional finance. It incorporates all financial institutions, and proceedings where a centralized body ensures the smooth running of that particular venture.Uniswap is a deFi platform, a Dex. For the record: Dex → Decentralized EXchange Lp → Liquidity Providers

Unboxing Uniswap

....AMM → Automated Market Makers. DeFi means DEcentralized Fnance. In this type, there's no central authority but a peer-to-contract mode of conducting financial activites. In fact, if you want to check Uniswap out, then you must have prior knowledge of web3 and trading in Cexs.As a decentralized exchange, all transactions done and trades taken is between you and the smart contract encoded already. For this reason, there's no censorship in Uniswap and other dexs alike. No need for KYC (know your customer) Very low fees and no need for taxes

Uniswap, A DeFi.

Uniswap's AMM is known as Constant product market maker model It's expressed mathematically this way, x*y=k Say k is the constant.That means, there's a given amount of tokens constantly in the liquidity pool Imagine that Uniswap's liquidity pool with 100,000 tokens as the constant So, 10 DAI * 10,000 ARBeth = 100,000 hypothetical btwIf I want to buy 10,000 ARBETH tokens in Uniswap, I will pay 10 DAI. If I want to buy 900 ARBETH, THEN x * 900 ARBETH = 100,000 The price of 1 ARBeth in DAI will be determined such that, the product of DAI tokens and ARBeth tokens gives the constant.

KUNG-FU PANADA

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