I might be a bit late to the party with this post but better late than never.
But that's fine though because I'm sure there are still people out there who don't know what Uniswap is or who haven't even heard of it before. If you're one of those people, hopefully this post here can help inform you on how you can earn crypto with them.
For those of you who've never heard of Uniswap before, they're a platform that allows users to swap Ethereum and ERC20 tokens via smart contract on their protocol. In addition to that, they're also a platform where people can add liquidity (coins) to their platform where the user would then get rewarded with crypto.
By adding liquidity to their protocol, you essentially get a cut of the 0.3% trade fees based on your share of the total liquidity pool. For example, if you've added 100 USDT in to the liquidity pool and the total liquidity pool is 1,000,000 USDT, then your share would be 0.01% (100/1,000,000).
When adding liquidity to Uniswap however, you need to add a 50/50 split between two coins. This means that you can't just add only USDT (as example) to the liquidity pool. You will need to add another coin as well. You could always just add a pair of stablecoins if you're not okay with the fluctuating prices of the coins.
As for the risks involved, I would say that the main ones are: gas prices, contract risk, and price fluctuation risk. There's also something called impermanent loss which is, from my understanding, like opportunity cost when swapping one coin to another. I could be mistaken about that as it may be more technical than my understanding. If you're reading this and know what it's all about and I'm wrong, please let me know.
Here's a quick 6 minute video on how you can add liquidity to Uniswap.
I hope that this post has given you some insight on how you can earn crypto on your crypto with Uniswap. There are many ways to earn crypto on your crypto but this is just one of many.
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