DEX
Here you can find a list of decentralized exchanges where you can buy or exchange LIME token.
The advantage of decentralized exchanges is the safety of funds that we store in our own wallet and not in an exchange account. The transaction is carried out directly p2p, i.e. client to client, the exchange only serves to link the seller to the buyer, and does not act as a bank in which we store our funds, for which we then buy cryptocurrencies.
What is Uniswap?
Uniswap is a decentralized exchange, protocol for creating liquidity and trading ERC-20 tokens on Ethereum. It eliminates trusted intermediaries and unnecessary forms of rent-seeking, enabling fast and efficient trading. Where he compromises, decentralization, censorship resistance, and security are prioritized.
Uniswap is open source software licensed under the GPL.
If you want to go deeper, check out the documentation.
Uniswap protocol disclaimer - https://uniswap.org/disclaimer.
How to use Uniswap?
First you need to activate a crypto account in your iMe wallet and have ETH in your balance. Go to the "Swap" tab on the main wallet page and select Uniswap to start using the protocol to exchange tokens. Remember that every transaction in Ethereum costs ETH (this is called a “gas fee”, it is paid to miners for keeping the network running). iMe does not hold any exchange fees, unlike other wallets.
How does Uniswap works?
Uniswap is an automated liquidity protocol. In practice, this means that there are smart contract templates that define a standard way to create liquidity pools and corresponding markets that are compatible with each other. There is no order book, no centralized party and no central intermediary in trade. Each pool is defined by a smart contract that includes several features that allow you to exchange tokens, add liquidity, and more. Essentially, each pool uses the x*y=k function to maintain a curve on which trades can occur. Pools keep track of reserves (liquidity) and update those reserves every time someone trades. Since the reserves are automatically rebalanced, the Uniswap pool can always be used to buy or sell a token without requiring a counterparty on the other side of the trade.
For a more detailed description, see the documentation on how Uniswap works.
Swap process in iMe via Uniswap
When exchanging a token for ETH or another token, a preliminary Approval operation is required, which is necessary once and is executed by a smart contract with Gas payment. Therefore, the first token exchange takes place in 2 stages with 2 Gas payments, first for the Approval, then for the Exchange itself. In the future, you will be able to exchange this token without the Approval operation.
Approval is a one-time transaction for ERC-20 tokens and is required before the exchange can begin. With this operation, you give permission to exchange your token via the Uniswap protocol using smart contracts. Since this operation takes place on the Ethereum blockchain, the gas fee will be deducted in ETH. There is no need to re-approve the current token.
When swapping ETH for tokens, you do not need to perform a preliminary Approval operation and you can immediately make an exchange, which is executed by a single smart contract with the payment of Gas.
Uniswap exchange fees are higher than a regular transfer transaction, as it is a smart contract operation that requires more computation and miner power.
Swap operation settings
Swap time and fee
The faster the exchange time, the higher the commission. We recommend that you always choose an average transaction time.
Transaction Deadline
Your transaction will be canceled if the wait is longer than this time.
Slipage tolerance
Slippage is the price change between the time your trade order is placed and it is confirmed.
Your swap will be automatically canceled if the slippage exceeds the set percentage.
Why is my transaction worth X?
Ethereum requires gas to complete every transaction. You can also check the ETH gas station to see the current prices required to complete transactions. Creating a Uniswap pool is a slightly more expensive transaction because you are executing a more complex smart contract. Learn more about how Ethereum gas works.
My swap failed, what happened?
If the exchange takes more than 20 minutes to complete, the router is programmed to fail the transaction. This is done to protect the user from sudden price fluctuations that may occur during the execution of a transaction. If this happens, your tokens will still be in your wallet, but the gas fee paid is non-refundable. To prevent this from happening, use a gas price that is high enough so that your transaction is mined in less than 20 minutes. In most gas price calculators, this usually falls under "Standard" or "Fast". You can also increase the exchange transaction time to 30 minutes.
Last updated