Uniswap is a protocol on Ethereum platform for swapping ERC20 tokens without the need for buyers and sellers to create demand.
On decentralised exchanges we have the liquidity problem, where there is not enough liquidity for buyers and traders to transact faster.
Uniswap allows the exchanges to directly swap the tokens without relying on the buyers and sellers creating liquidity.
Uniswap was created by Hayden Adams inspired by a post of Ethereum founder Vitalik Buterin.
When an amount of ETH/Erc20 token is added to the liquidity pool, a pool token is issued to the liquidity contributor. Pool tokens are created whenever funds are diposited to the pool. Pool tokens can be exchanged in the dapps. When the funds are claimed the pool token is burned or destroyed. Pool tokens represent the share of the user's pool total assets and share of the pool 0.3% trading fee.
To swap the tokens you need to go to uniswap.org in a blockchain compatible browser (Metamask, Trust Wallet)
Let's use SWFL in this example:
1> Connect your Eth wallet where the funds are stored.
2> Go to uniswap.org
3> Click on launch app
4> Click on Swap tab
5> Enter both the value of tokens that you want to swap.
6> Click Swap
7> Click on confirm Swap
8> Approve the transaction
