Enhancements and Practical Guide to NFT Trading on Uniswap
Summary:
Uniswap, a decentralized exchange facilitating cryptocurrency and nonfungible token (NFT) swaps, operates via smart contracts that enable platform improvements and upgrades. Using ERC-721 NFT contracts, Uniswap ensures each NFT's uniqueness and tracks ownership. Its toolkit includes a mobile app, a web app, and an NFT aggregator, aiding in digital assets' swap. After introducing new smart contracts in November 2022, Uniswap has enhanced its platform's efficiency and effectiveness. They also introduced the Mini Portfolio feature in March 2023, a tool allowing users to monitor and manage their assets via the Uniswap Web app. The report offers step-by-step instructions on how to use Uniswap for buying, selling, and delisting NFTs.
Uniswap is a decentralized exchange that allows users to swap cryptocurrency tokens and nonfungible tokens (NFTs). Since its launch in 2018, Uniswap’s NFT marketplace has facilitated over 250 million swaps. Uniswap operates via smart contracts that, while fixed at the contract level, can still be upgraded and improved through governance processes. This functionality has allowed Uniswap and NFTs to interoperate and enabled the trade of NFTs across various blockchains, including Ethereum, BNB Smart Chain, and Polygon.
Uniswap uses ERC-721 NFT contracts, which assign a unique ID to each NFT, verifying their uniqueness and tracking ownership. The protocol includes a suite of tools, such as an NFT aggregator, that helps facilitate the swapping of digital assets like Ethereum NFTs on Uniswap.
Uniswap's toolset that runs on its protocol enables UNFT trading and cryptocurrency swaps and includes a mobile app for exploring, sending, swapping and buying NFTs and cryptocurrencies, a Web app for desktop or laptop usage, and an NFT aggregator that helps track all listings across major marketplaces and exchanges.
In November 2022, Uniswap rolled out a new set of smart contracts intended to boost security and minimize costs. These included Permit 2, which allowed for token approval management across different applications, and Universal router, which unified NFT and ERC-20 swapping. These smart contracts have been widely adopted within Uniswap's developer ecosystems, enhancing the platform’s efficiency and effectiveness.
Uniswap compiles its listings from various marketplaces such as OpenSea, Larva Labs, and Foundation, among others. Here are the steps on how to use Uniswap for NFT transactions:
To buy NFTs on Uniswap, connect your wallet to the Uniswap Web app, select the NFTs you want and add them to your bag, choose the ERC-20 token you want to use to pay for the transaction, and finally confirm the purchase in your wallet.
To sell NFTs on Uniswap, connect your wallet to the Uniswap Web app, choose the NFTs you want to sell, select the marketplace where you would like to list the NFT for sale and the price you wish to get, and finally, sign the listing for the sale to go live.
If you want to delist an NFT on Uniswap, find the NFT on the Uniswap Web app, connect your wallet, find the NFT and the marketplace where you listed it for sale, and delist the NFT on the marketplace website. Repeat this process if the NFT is listed on multiple marketplaces.
To sweep an NFT collection on Uniswap, implying that you have acquired all or several pieces of an NFT collection at the base price, find the NFT collection on the Uniswap Web app, choose "Sweep," and perform a sweep by ETH amount or by a specific total ETH amount, then review the transaction and complete it.
On March 22, 2023, Uniswap introduced Mini Portfolio, a feature that lets users view and manage their assets on the Uniswap Web app. This feature allows users to connect any wallet to the Uniswap Web app to oversee their activities. They can view all their token balances and token details on one platform to evaluate all swaps, price history, and total value locked (TVL). The feature also lets users buy cryptocurrency directly from their Mini Portfolio using any bank or debit/credit card and view their entire NFT collection.
Users can check their liquidity pool (LP) token status on the "Pools" tab and manage a pool position by selecting any of the pools listed. The Uniswap auto router helps find the best trading route for the most advantageous swap price that might come from several liquidity pools.
This report does not provide investment advice or recommendations. Investing and trading entail risks, and individuals should do their own research before making a decision.
Published At
4/10/2024 6:45:00 PM
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