Ubeswap is a decentralized exchange and the most used dApp on the Celo blockchain.
Celo is a smart contract blockchain that offers low fees and has a strong focus on smart phone users. The aim of the blockchain is to provide all smart phone owners the possibility of becoming their own bank because worldwide there are more people with phones and internet connection than people with access to a trustworthy finance infrastructure.
The blockchain allows users to turn their phone number into a public crypto address, which makes it easy to send funds to anyone whose contact info you have. There are also algorithmic stablecoins that can also be used to pay for network fees, this allows Celo users to use the blockchain as a bank account without being hurt by the volatility of cryptocurrencies.
Ubeswap is bringing decentralized trading to this smart phone friendly blockchain. You can use the swap via a smart phone but you can of course also use it with a PC. This is enriching Celos target group with an easy and decentralized way to trade all kinds of assets that could be launched on Celo.
The DEX works similar to Uniswap, with liquidity pools and an AMM. The liquidity providers are offering the much needed funds in exchange for a trading fee that they are earning and the prices are set automatically based on the supply of the tokens in the pool.
You can trade CELO, cUSD, cEUR, other tokens that are native to Celo and even wrapped tokens from other blockchains like Ethereum and Avalanche. This brings a lot of liquidity to the blockchain and therefore increases the value of the entire network. Decentralized exchanges also help with the creation of other dApps because they can sell and distribute their native tokens.
Like mentioned before there are trading fees. Each trade has a 0.3% fee that is paid with the tokens you are trading. 0.25% of that is going to the liquidity providers and 0.05% is going to the stakers of the native UBE token, similar to how xSUSHI works. This is providing an incentive to UBE holders to use their governance rights wisely to attract more liquidity providers.
Since Ube has lots of liquidity and provides a much needed DeFi service, it has grown to be an essential part of the Celo network and will likely stay the most used dApp there for a long time.
The UBE Token
Ubeswap has a native cryptocurrency called UBE. It is a governance token that allows its holders to vote on changes to the protocol. A share of the trading fees is also used for buy backs of UBE tokens that are distributed to people that stake their tokens in the governance pool. The more liquidity the protocol has and the more trading is done on the platform, the more will the holders earn, this ensures that they use their governance rights properly.
There is a max supply of 100 million UBE tokens. 72% of that supply is being distributed to liquidity providers over the next 6 years with the distribution halving every 26 weeks, 25.7% were reserved for the founders and are being vested over 3 years and 2.3% were put aside to provide liquidity for new projects that want to launch their tokens on Ubeswap. Most of the supply is going to users and supporters of the platform like it should.
The value of the token depends on how much liquidity is in the Ubeswap trading pools. That is partly because there will be more demand for governance rights if they affect more funds, but also because the token holders will earn more fees if the DEX is offering more funds for trading. Since Celo is a project with a great vision and great utility, it could grow to be a very big smart contract blockchain and since Ubeswap is its main DEX and most used dApp, it has also a lot of potential.
The UBE token has not been listed on any centralized exchange yet, but you can buy it on itself if you have some CELO. You can store your tokens in a Valora WalletMetaMask Wallet if you connect it with the Celo network, you can also use METAMASK to interact with Ubeswap.
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