Introduction to Uniswap

Transcript

okay so next up we're gonna have a a wonderful DAP founder up on stage the DAP is called you know swap some of you may have heard of it it's a pretty awesome and very unique use of a cerium so let's welcome to the stage Hayden Adams whoo thank you all right I mean make sure I know how this works all right hello my name is Hayden Adams I created a project called you swap it's a decentralized exchange protocol built on top of aetherium all right so the core idea of you know swap is to make it as easy as possible to swap between ether and DRC 20 tokens it allows liquidity providers to pool liquidity and on chain liquidity reserves and then

it automates the pricing users can now swap back and forth between ether and the RC 20 tokens you can also go in between any a RC 20 pair by going your C 22 eath eath to another a RC 20 and then back to the buyer because the pricing is fully automated and it's all using a smart contract you have no other counterparties so you don't need to have some sort of order book completely remove the idea and liquidity providers can be profitable by slowly generating fees you know over a long period of time and right now liquidity providers on unit swap a lot of them are making between five and 15 percent profits okay so when I first started working on unit

swap the main deck this was a you know midway through 2017 or fall 2017 the main decks at that time was ether Delta and ether Delta was a big step up from centralized exchanges because it removed because it was non-custodial so the founder of ether Delta he never had any ability to you know steal your funds as opposed to you know keeping money in banks or on coinbase or whatever the other thing you know there were some issues such as can I go back okay cool so it was it was pretty nice but you know it didn't quite hit all those properties for one it was a little bit of a difficult UX to use so you know

compared to you know swap which is really simple and clean but it also had this product it didn't really hit all the core properties of a cerium that at that time I was really interested in so what I liked about aetherium in 2017 was that it was decentralized so you know no one had the ability to take your funds it was censorship resistant so you know if it's impossible to really shut down you'd have to basically shut down every single aetherium node and it allows you to engage in complex financial transactions without needing to trust your counterparties so you know you can you know these were like multi SIG's or all sorts of things but you know a lot of the projects built on top of a theory

I'm in 2017 I noticed they didn't really have all of these key properties you know they might have I've had some of them like decentralization or trusted execution but for the most part they had you know admin private keys they could be shut down you know ether Delta had an off chain order book controlled listing of tokens listing fees stuff like that so if their name is cool because of decentralization censorship resistance and trustless execution Yunis WAP is cool because of decentralization censorship resistance trustless execution okay it's a pop quiz if you build a centralized app on a decentralized platform you get a the benefits of both be the benefits of neither sea bank or ordi both B and C I

feel free to just shout your answers out I'm jacking done no but really if you build a centralized app on top of a decentralized platform the answer is B you get the benefits of neither you can't you know you you get all of the decentralization and censorship resistance of coinbase and you get all of the scaling of aetherium so I think that you know you probably want to make sure that the applications you build on top of aetherium or mimicking the underlying properties so other reasons I kind of like you know swap and some of the properties I like about it are that a highly is very incentivizes liquidity it makes it incredibly easy to lock up your liquidity into one of these pools

you don't need to be a sophisticated market maker so norm when you're working in a unlike Dex with an order book or you know a centralized exchange with an order book you have to be running these you know bots you have to have a lot of liquidity you can't really pool across multiple people because they would need to trust each other you just swap you know you're just really easy you just throw it in and over time it can generate fees it's incredibly easy to integrate this is because it's fully on chain and the pricing is fully automated one example of a cool integration with khyber where you know if you make a swap on khyber now they check the price on unis welp they check the price in their own reserves and then they just execute it over whichever one is cheaper so that's

pretty cool another thing I like is it I kept it really simple I mean good UX and great memes so here are some examples meme one this one this one is good this is one of my favorites I don't know why this one is a good one anyway so so I launched you to swap in November at DEFCON 4 in November 2018 yeah since then you know I was kind of expecting to get a little bit of slower growth and it did as of now it has about 10 million dollars in liquidity pools a nine million dollars were traded last week so about 1.2 million dollars per day 300,000 eath has

been traded since November and there are about 250 different exchanges or 250 different tokens listed and part of the reason is it you know allows anyone to create these pools anyone to join them anyone to trade and there's nothing I can do to stop it there's nothing any of you got guys can do to stop it there's nothing any government can do to stop it it's you know it's very decentralized yeah this is a little bit of the growth of the liquidity pool yeah still going up so you know you might think that ten million dollars it all came from a few people but this is the distribution of the die liquidity pool I don't know if you can see but the the cyan torco is one or whatever you want to call that color is actually other so about 25% of the die liquidity pool

which has two million dollars in it it has less than 1% are you know 25% of the pool comes from people who less than 1% the largest single liquidity providers 14% of the pool so it's you know very well distributed so this is the distribution of liquidity this is the distribution of risk this is the distribution of rewards it's it's pretty simple I think that you know rewarding people based off the risk they take the amount they contribute is you know pretty reasonable I think that a lot of projects have built in you know disproportionate reward systems where people who don't take on very much risk a huge percentage of the rewards Oh am I missing I feel like some stuff are

missing let me say go back can I go back mmm one sec anyway no okay well that's fine maybe it's not fine I prefer I could go back nope all right huh okay cool I'll just chill I'm not gonna wrap like this morning I can but I choose not to I sit okay cool thank you all right let me so there were a few slides missing

somehow not sure why but that's fine I'll talk about some of the others all right cool all right cool so one of the cool things they like about unit swap is it's you know as I mentioned it's incredibly easy to integrate I tried to design it as a very low level protocol so you know any anything can kind of plug in and one example of a kind of complex integration you could do would be someone could lock up their liquidity in unis whap they would get a liquidity token they represented their ownership of that pool they could collateralize that in maker dow or compound or Dharma take out a loan against it they could either use that to increase the collateral on their

loan they could you know lock is in a validator pool proof of stake system and start generating fees on that so now they're generating fees while they're generating fees so that's nice so kind of this is the example of the sort of more like Revathi reom that excites me and sort of the types of things that I'm hoping are gonna be built on top of it you know who are the users of unis to me it's you know everyone I think that you know for one its taps and apps I think that you know having the ability for an application to take a fee or to be paid in any token and to be able to on the fly convert it to whatever token it

wants is very powerful I think that centralized exchanges could use it as a source of liquidity I think that wallets can use it as a source of liquidity I think you know traders arbitrage errs random people hopefully it can enable more type more different people to you know be a part of the global financial system so you know because there's a because it's built on top of etherium because there's no walled gardens I don't know I I'm pretty excited anyway that's most of what I have [Applause]