Hayden Adams, founder of the new decentralized exchange Uniswap, discusses how Uniswap differs from a traditional exchange based on order books, how market the contract determines the price of the tokens, and how market making on Uniswap is similar, in terms of payment, to participating in a mining pool. He covers under which conditions it is that a market maker will earn profit, what fees go toward in Uniswap, and how the contract functions as the dollar values of each token in a liquidity pair fluctuate. He describes how Uniswap quickly became one of the biggest decentralized exchanges on Ethereum since its launch in November, why gas fees are lower on Uniswap than other dexes, and how new tokens get listed on Uniswap. Plus, he talks about what regulatory risk he faces, how he plans to make money off the dex, and what he thinks of the idea that Dan Elitzer described in last week's Unconfirmed — people using the Uniswap liquidity pair tokens as collateral for loans.
Thank you to our sponsor!
CipherTrace: http://ciphertrace.com/unconfirmed
Episode links:
Uniswap: https://uniswap.io
Uniswap on Twitter: https://twitter.com/UniswapExchange
Hayden: https://twitter.com/haydenzadams
Explanations of Uniswap:
High level overview by Cyrus Younessi of Scalar Capital: https://medium.com/scalar-capital/uniswap-a-unique-exchange-f4ef44f807bf
Another by Ross Bulat: https://medium.com/@rossbulat/uniswap-understanding-the-decentralised-ethereum-exchange-5ee5d7878996
Analysis of Uniswap on Token Daily: https://www.tokendaily.co/blog/pnl-analysis-of-uniswap-market-making
The posts by Vitalik Buterin that Hayden used to create Uniswap:
On Reddit: https://www.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/
The comment by Vitalik near the top of this blog post about Bancor: http://hackingdistributed.com/2017/06/19/bancor-is-flawed/
Blog post by Vitalik: https://vitalik.ca/general/2017/06/22/marketmakers.html
Unconfirmed episode with Dan Elitzer on superfluid collateral and Uniswap liquidity pair tokens being used as collateral: https://unchainedpodcast.com/how-to-earn-money-on-collateral-in-defi-and-why-thats-risky/
Electric Capital on the Coins Punching Below Their Weight - Ep.86
Kik's Surprising Move in Its Lawsuit With the SEC - Ep.85
The IRS Is Cracking Down on Crypto Taxes: What You Need to Know - Ep.84
Jeremy Allaire on Why the US Government Needs a New Category for Digital Assets - Ep.83
Why the Congressional Hearings on Facebook's Libra Were Good for Bitcoin - Ep.82
Why Crypto Regulation Is Surprisingly Cypherpunk - Ep.81
Why It Would Be Good if Libra Rivaled the US Dollar - Ep.80
'Bitcoin Billionaires' Author Ben Mezrich on the Zuckerberg- Winklevoss Rivalry - Ep.079
Libra's Dante Disparte on Why We Should Trust a Financial System Designed by Facebook - Ep.078
Edgeware's Unusual Lockdrop: Get Tokens Even With Frozen Funds - Ep.077
LocalBitcoins on How Bitcoin Trading Compares Across the World - Ep.076
Ethereal 2019: DeFi and Paths to Everyday Usage - Ep.075
To the Moon and Back With Polychain's Olaf Carlson-Wee - Ep.074
Why HTC's Exodus 1s Will Have a Full Bitcoin Node - Ep.073
Binance Hack: Should the Threat of Reorgs Be Used to Deter Hackers? - Ep.072
What Happened to Bitfinex/Tether's $850 Million - Ep.071
Could Social Media Discontent Help the Decentralized Web? - Ep.070
Blockstack's Reg A+ Filing and the Future of Token Offerings - Ep.069
Coinbase Custody: Keep Your Crypto Safe and Use It Too - Ep.068
How Useful Is the SEC's Guidance on ICOs? - Ep.067
Create your
podcast in
minutes
It is Free
Pharmacy Podcast Network
Startitup podcasty
Sarah Westall - Business Game Changers
Børsen Morgenbriefing
The Economics Show with Soumaya Keynes