Launch a Uniswap Clone App and Build Your Decentralized Exchange

Record-breaking and revolutionary are the two terms to describe the success of Uniswap. The Ethereum-based Decentralized Exchange (DEX) has established a strong ecosystem. DApps, traders, and liquidity providers (LPs) can connect directly on an open-source marketplace. Are you that entrepreneur who wishes to make a big impact in the DeFi ecosystem? Develop a Uniswap clone app now.

Photo by Art Rachen on Unsplash

The key aspects that go behind Uniswap clone app development are

Automated Market Maker (AMM) — Centralized exchanges involve a lot of intermediaries in the buying and selling of assets. However, a Decentralized Exchange like Uniswap is different. It uses an order book where all the information is held on-chain. Moreover, the funds of investors are held off-chain in digital wallets.

How do the assets get priced? Ethereum-based smart contracts will formulate an Automated Market Maker (AMM). This ensures that users can execute peer-to-peer (P2P) transactions easily. As a result, they can swap ERC-20 tokens instantly. They can allocate their funds based on how the two assets move in the market.

Buyers, as well as sellers across the universe, will directly deal with the liquidity pools. Thus, the chances of slippage are less as they will not deal with orders left by other parties in the DeFi platform.

Decentralized System of Governance — A DeFi development company will create tokens like UNI. Holders of these virtual assets can vote and make decisions on important proposals. They will receive access to a portal where users can check on proposals under consideration.

Further, there are 3 phrases, Temperature Check, Consensus Check, and Governance Proposal. Eventually, investors get a sense of community ownership and can also view the proposals on a real-time basis. Moreover, users can also cast their votes off-chain before a certain deadline.

Generally, this occurs during the early stages of a proposal’s lifecycle. In the long run, proposals that get the majority of votes will win. Besides that, investors need to satisfy certain conditions like having a minimum balance of UNI tokens and ETH for processing peer-to-peer (P2P) transactions, and a software wallet like MetaMask.

Instant swapping of tokens — Round-the-clock trading of assets is the highlight of an Uniswap clone app. Users can choose acclaimed DeFi tokens like Aave, Balancer, Basic Attention Token (BAT), Compound (COMP), 1INCH, SNX, UNI, Yearn.Finance (YFI), and ZRX (OxProtocol).

Traders can also select options like search (for token names and smart contract addresses), choose common bases like stablecoins (DAI, USDC, and USDT), Ethereum (ETH), Wrapped Bitcoin (WBTC), and Wrapped Ether (WETH).

Besides that, they can manage token lists with InterPlanetary File System (IPFS) and Ethereum Name Service (ENS). Investors can tap on or off and also store details of custom tokens in their web browser. All these are displayed at the top of an app like Uniswap. This ensures that investors can swap ERC-20 tokens effortlessly.

Informative charts and graphs — The market conditions are fluctuating rapidly and you need to capture the trust of investors. Retail, as well as institutional traders, will know if it is a bullish or a bearish run in the market.

They would receive quantitative data about the total value (TVL) locked, trading volume (daily, weekly, and monthly), and price changes in different tokens. Investors can make the right decision by saving their preferred tokens to the watchlist.

Thus, they can manage portfolios efficiently. Moreover, they get real-time updates about Top Movers. It contains a list of crypto tokens and DeFi tokens that are providing high returns for investors. Moreover, users can strategically allocate their funds to both individual tokens and liquidity pools (different trading pairs).

Photo by Jeremy Bezanger on Unsplash

Analysis: Is Exchange Traded Product (ETP) the future of Decentralized Finance (DeFi)?

  • Financial markets and digital assets are going hand-in-hand. Valour, a Switzerland-based Exchange Traded Product (ETP) and listing services firm made a big announcement recently.
  • In partnership with Uniswap, the Valour Uniswap (UNI) will start trading in Swedish Krona (SEK). It is currently happening on the Nordic Growth Market (NGM), a regulated exchange in Stockholm. Investors can directly access UNI tokens by linking their bank account or making orders via a brokerage.
  • What does this lead to? The mainstream adoption of Decentralized Finance (DeFi). Similar to how securities are traded on the bourses, the Valour Uniswap (SEK) will receive high demand from small, as well as big investors. This gives them an advantage as they need not possess crypto tokens and DeFi assets nor have a software wallet.
  • The partnership between Uniswap and Valour will be a turning point for both. Currently, the Ethereum-based Decentralized Exchange (DEX) has a whopping trading volume of more than $658 billion. Overall, it has executed more than 80 million buy and sell trades.
  • On the other hand, Valour is a credible name in the asset management industry. Apart from the NGM exchange, it is also getting more trades in the Frankfurt Stock Exchange (FSE). Moreover, the Zug-based financial services giant handled assets worth $370 million in November 2021. Importantly, there has been a 4000% growth in its assets since the start of this year.
  • Investors also receive benefits like real-time portfolio management, a personalized fund manager, strategic reduction in risk, and protection by real-world assets.

Moreover, real-time information is shared about the average price, fair value of Uniswap in Euro (EUR) and Krona (SEK), expiry date (open-ended) and the listing date. Post the successful execution of the trade, investors have to pay management fees. Later, they will receive an open-ended tracker certificate.

Photo by Pierre Borthiry on Unsplash

Why integration with the Polygon sidechain would benefit Uniswap?

The massive growth of Polygon has taken the world of Web 3.0 by storm. It has integrated with the popular NFT marketplaces as well as DeFi projects. Currently, a proposal is underway for merging the DeFi protocol with the Polygon sidechain.

Importantly, this provides advantages like a greater user base, scalability, low gas fees, and greater profits. Besides that, Polygon seamlessly works with Ethereum as well as multi-chain systems. Interoperability is another big benefit.

This is because it has a solid technical infrastructure. With an array of roll-ups, standalone and enterprise chains plus a software development kit (SDK), Polygon is upping the ante in the DeFi ecosystem.

The Indian platform has hosted 3000 applications, processed a whopping 1 billion transactions and secured assets worth $5 billion. Eventually, in the years to come will see the formation of a Decentralized Autonomous Organization (DAO) and liquidity mining.

Wrapping Up

Do you want to be the pioneer in the management of financial assets for the Next-Gen? Reach out to a Decentralized Exchange (DEX) creation enterprise company now for developing your Uniswap clone app instantly.


Launch a Uniswap Clone App and Build Your Decentralized Exchange was originally published in DataDrivenInvestor on Medium, where people are continuing the conversation by highlighting and responding to this story.