Hey all!
I just wanted to share what I've been learning the and creating the past few days. Today's post is about a decentralized exchanged called Uniswap. Uniswap is specifically for Ethereum and "ERC-20" tokens.
Currently, I am using https://leodex.io to trade my Hive tokens, which works almost exactly like Uniswap does. If you're interested in how it works or want to see an example, check out this video:
Uniswap works by implementing an "Automated Market Maker" where the price is justified by demand. As more people buy a token, the price rises, and as more people sell it, the price drops.
Automated Market Makers and Liquidity Pools were very confusing for me at first, but I hope to help educate more people by breaking them down into simple concepts and ideas.
https://cubdefi.com work exactly like Uniswap, however it is for trading on the Binance Smart Chain. You can use cubdefi to trade any Binance token to "wrapped" Leo token, and vice versa. This "wrapped" Leo token is essentially a representation of the Leo token on the Hive Blockchain - where it first started. The Binance version of the token is "bLEO", while the Ethereum version of the token is "wLEO".
These token-swapping platforms allow traders to get in and out of a coin whenever they want for very little fees. I highly recommend checking out CubDefi and LeoDex if you haven't already!