Uniswap is a decentralized exchange where users can swap cryptocurrency tokens and nonfungible tokens (NFTs). The Uniswap NFT marketplace has handled over 250 million swaps since its inception in 2018. Uniswap’s protocol consists of smart contracts, which are persistent and non-upgradeable at the contract level but can still undergo upgrades and improvements through governance processes. This has facilitated Uniswap and NFT interoperability, making it possible to trade NFTs on several blockchains, including Ethereum, BNB Smart Chain and Polygon.
Uniswap leverages ERC-721 NFT contracts, which offer a unique ID to identify each NFT. These ERC-721 tokens on Uniswap are nonfungible and facilitate the exchanging of NFTs and keeping track of ownership.
The protocol contains a suite of tools, including an NFT aggregator, which facilitates swapping digital assets like Ethereum NFTs on Uniswap. This guide to Uniswap NFT trading explores how users can go about trading digital assets on Uniswap.
Uniswap’s role in NFT exchange
Uniswap has developed a suite of software tools that operate on the Uniswap protocol, facilitating UNFT trading and cryptocurrency swapping. These tools include:
Uniswap app: A mobile app for exploring, sending, swapping and buying NFTs and cryptocurrencies.Uniswap Web app: It does the same job as the Uniswap app but on your desktop or laptop.Uniswap NFT aggregator: An aggregator marketplace that integrates elements of DeFi and NFTs on Uniswap. This tool helps track all listings across major marketplaces and exchanges, helping traders find the best deals.
In November 2022, Uniswap launched a new set of smart contracts aimed at enhancing security and optimizing costs within the platform:
Permit 2: Allowed sharing and managing of token approval across different applications, improving security, creating a unified platform and reducing costs.Universal router: Integrated with Permit 2, unifying NFT and ERC-20 swapping in a single swap router. This allows users to swap multiple NFTs and tokens in a single…..
