Uniswap (UNI)

Use Cases of Uniswap

• Decentralized Trading: Uniswap allows users to swap different cryptocurrencies directly from their wallets without needing a central exchange.
• Liquidity Provision: Users can add their tokens to Uniswap pools to help others trade and earn fees in return.
• Price Discovery: Uniswap’s automated market maker system helps set token prices based on supply and demand.
• Access to New Tokens: It provides a platform where new or less-known tokens can be traded easily.
• Decentralized Finance (DeFi) Integration: Uniswap supports various DeFi projects by enabling token swaps and liquidity services within the ecosystem.

Pros

• Decentralization: Uniswap allows users to trade directly without intermediaries, supporting censorship resistance and user control.
• Wide Token Selection: Users can swap any ERC-20 token, with permissionless listings allowing many tokens to be available.
• Liquidity Pools: Users can provide liquidity to pools and earn rewards or interest from trading fees.
• No Account Needed: Trading happens by connecting a crypto wallet, no signup required.
• Open Source: The platform is open source, promoting transparency and community trust.
• Cross-Chain Support: Supports token swaps on Ethereum and layer-2 solutions like Polygon, Optimism, and Arbitrum to reduce fees.

Cons

• No Fiat Trading: Uniswap only supports crypto-to-crypto trades; you cannot buy crypto with fiat money directly.
• No Order Book: Uses an Automated Market Maker (AMM) model, so it lacks traditional order book features.
• Limited Features: Does not offer advanced trading options like leverage, lending, or NFTs.
• Gas Fees: Transactions require gas fees on Ethereum, which can be high during network congestion.
• Complex for Beginners: The interface and concepts like liquidity pools may be confusing for new users.

For more details, visit the official Uniswap website.

Founders of Uniswap

Uniswap was founded by Hayden Adams, a former mechanical engineer at Siemens. He created Uniswap in November 2018 and is the founder and CEO of Uniswap Labs, the company behind the Uniswap protocol.

Early Investors

Uniswap was initially backed by well-known venture capital firms such as Andreessen Horowitz, Paradigm Operations, Union Square Ventures LLC, and ParaFi.

Recent Funding Rounds

Uniswap Labs has raised about $176 million over 3 funding rounds. The largest recent round was a Series B in October 2022, raising $165 million.

Key Investors

Some of the notable investors include Polychain (lead investor in the latest round), Cluster Capital, Deeptech Ventures, Fantail Ventures, FJ Labs, and Global Support Capital.

Investor Activity

Large holders of UNI tokens, including early investors and institutional addresses, have been active in moving significant amounts of tokens to platforms like Coinbase Prime, indicating ongoing management of their holdings.

Halal Status of Uniswap

• Yes, Uniswap is generally considered halal by some Islamic scholars and sources because it operates as a decentralized exchange that allows fair and functional participation in a financial marketplace.
• The UNI token, used for governance, has utility within the platform, which supports its halal classification.
• However, some debate exists due to the speculative nature of the token and the permissionless structure, which can make full Shariah compliance complex for some investors.

Overall, many sources conclude Uniswap and its UNI token are halal based on their utility and decentralized financial model.