Have you heard about the recent hot Uniswap protocol?

Original title: "the recent hot Uniswap protocol, have you heard of it?"

Source: daily planet

With the popularity of decentralized financial DEFI, it also provides a theoretical basis for much of the infrastructure of the blockchain world. And li lizhong of ant financial has said that the first place where blockchain technology will be launched must also be in the financial sector. So now we look at DEFI field, although there are often various problems, such as the BZX theft incident, 0DAI incident and so on, which also reflect the immature DEFI industry at present. However, we are all witnesses in the development of DEFI in the face of the decline and rise of DEFI projects one after another.

DEFI according to Dappreview (suggested friends can go Dappreview view the corresponding data, relatively comprehensive), currently DEFI contain borrowing, reserve DEX (model) against the etheric fang shan, thin DEX order, payment, stable currency, prediction markets, seven categories of financial derivatives, and the collection of all DEFI project (basic are the present operation of the project) contains 25, total lockups value $751084393, Ethereum lending program MAKER accounted for 41.86 percent of all lock-up positions. In fact, the volume of DEFI is still very small at present, and the borrowing funds in the DEFI field are in a dominant state. Although the distribution is not healthy at present, it is also gradually developing towards the trend of one super strong.

One of the categories in DEFI, the storage library DEX (known as SWAP DEX), has been in our sights a lot lately. So the following content will briefly introduce the basic model of SWAP DEX Uniswap protocol from Mario's personal perspective.

In fact, I prefer to understand the Uniswap protocol as a kind of "flash exchange". Users can convert one kind of TOKEN into another through the Uniswap protocol. From the perspective of ETH alone, it is a flash exchange between ETH and ERC2.0 tokens.

In the Uniswap protocol, there is A capital pool, and each currency corresponds to A capital pool. For example, if I want to change ETH into A certain ERC2.0TOEKNN, let's call it A, then I will actually send the existing ETH into the ETH capital pool in the contract and enter it through the algorithm coefficient set by the system program. You get A TOKEN of the amount of money you want to send, which is essentially A transaction between the user and the smart contract.

In the Uniswap protocol, there are trading contracts and factory contracts, which are easy to understand literally. Each currency will correspond to a unique capital pool, which in fact can be fully understood as a trading contract, and the assets between it and the user are automatically transferred in and out. There may be many, many trading contracts. The factory contract is used to deploy the transaction contract. If you want to deploy a transaction contract for your ERC2.0 token, you need to deploy it through the factory contract.

And when reserves are prepared in the corresponding trading contract, the capital pool, before trading in the two currencies, then the exchange rate of the first trader provides an initial ratio between the two, and then liquidity increases according to the continuous trading of subsequent users. Based on its constant product value algorithm, the price of the two tokens will gradually be consistent with the outside world, and if the price of the equivalent central Europe crest TOKEN is out of balance, some traders will come to carry the brick and balance the price with the outside world. This is the general idea of the Uniswap protocol.

In fact, the traditional "order book" matching trading relies on the buying and selling market, so if there is not a sufficient depth of the buying and selling market, the trading experience will be extremely poor. So the Uniswap protocol solves this problem well, and in DEX which is considered as weak intervention, the Uniswap protocol can be completely used as the basic model of transaction.

At present, Uniswap protocol has been used as a section of SWAP DEX in DEFI, which includes four "flash exchange" protocols: Uniswap, Bancor, Kyber and Tokenlon. In fact, I think it is OK to call it DEX or flash exchange. The Uniswap protocol model was actually deployed in the ethereum network in November 2018, after a year of development. So far, the Uniswap protocol is not mature, but its feasibility has been verified. Currently, DEX is also trying to lay out the Uniswap protocol for some EOS ecosystems, such as Newdex Swap, which was recently launched, and this is the first practice of the Uniswap protocol outside the einsteum chain.

However, for the Uniswap protocol, the autonomy is more, and the autonomy will contain many human factors, so the credit of TOKEN, such as a certain bad TOKEN (money TOKEN), will directly affect the development of the whole system.

Original link:https://www.odaily.com/post/5148496

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