How to Buy Uniswap (UNI) in Australia

Uniswap is one of the best-known decentralised exchanges (DEXs) in cryptocurrency: a set of open-source smart contracts on Ethereum that let people swap one token for another directly from their own wallet, without an exchange company holding their funds or matching orders. UNI is the governance token of that protocol. It helps to separate the two: Uniswap is the trading protocol, while UNI is an ERC-20 token that gives holders a say in how the protocol is run.

Instead of the order book used by traditional exchanges, Uniswap pioneered an automated market maker (AMM). Prices are set by a mathematical formula against pools of tokens that users supply, rather than by matching individual buyers and sellers. This design let anyone list a token or provide liquidity, and it helped Uniswap grow into one of the most heavily used exchanges in decentralised finance. On Digital Surge, UNI is categorised as a Decentralised Finance (DeFi) asset and is tradeable and swaps-enabled.

• Token type: an ERC-20 governance token on Ethereum (UNI is a token, not its own chain).
• Protocol: Uniswap, an automated market maker DEX for swapping tokens.
• Model: liquidity pools priced by a formula, not a traditional order book.
• Token role: UNI holders vote on Uniswap Governance proposals.
• Created by: Hayden Adams, who launched the protocol in 2018.

Who created Uniswap?

Uniswap was created by Hayden Adams, a developer who deployed the first version of the protocol to the Ethereum mainnet in November 2018, inspired by an idea for on-chain market making described by Ethereum co-founder Vitalik Buterin. The protocol grew quickly through later versions that improved how liquidity is provided and priced. The UNI token came afterwards, launching on 16 September 2020 and distributed partly to people who had already used the protocol, handing control of Uniswap to its community through on-chain governance.

How does Uniswap's automated market maker work?

Uniswap replaces the buyers-and-sellers order book with liquidity pools. Anyone can become a liquidity provider by depositing a pair of tokens into a pool, and traders swap against that pool. A constant-product formula, often written as x times y equals k, adjusts the price automatically as the balance of the two tokens in the pool changes, so the more you buy of one side, the more its price moves. Liquidity providers earn a share of the fees paid by traders. Because it all runs on public smart contracts, anyone can use it or build on top of it, and it now works across Ethereum and several Layer 2 networks.

What is the UNI token used for?

UNI is a governance token, and that is its core purpose. Holders, and the people they delegate their votes to, can create and vote on Uniswap Governance proposals covering things like how the treasury is spent, whether to switch on a protocol fee, and future UNI issuance. In other words, UNI is a participation right in how Uniswap develops, rather than a claim on the protocol's revenue or a way to earn simply by holding it. This is general information only, not advice.

Can you stake UNI on Digital Surge?

No. UNI is not a staking token in the traditional sense, and staking is not offered for UNI on Digital Surge. Its built-in benefit is the governance vote, not a staking reward. On Digital Surge, UNI is tradeable and swaps-enabled, so you can buy it, sell it for AUD or swap it for other supported coins. If you want to vote in Uniswap Governance, you would hold your UNI in a self-custody Ethereum wallet and take part through the protocol directly.

Things to consider before buying Uniswap

Cryptocurrency is volatile, and the AUD value of UNI can rise or fall sharply over short periods, so the value of what you hold may change quickly. As a DeFi governance token, UNI also carries risks tied to the protocol itself, such as smart-contract bugs and changes decided by governance. Digital assets are not covered by government guarantees the way bank deposits are. This is general information only and not a recommendation. Consider your own circumstances, do your own research, and speak to a qualified professional about tax before buying.

Why Buy Uniswap?

Many Australians hold Uniswap because it powers one of the most widely used decentralised exchanges, its UNI token carries a genuine vote over how the protocol develops, and it works across Ethereum and several Layer 2 networks. Digital Surge lets you buy UNI with AUD via PayID or bank transfer, with Australian-based support. This is general information only and not a recommendation; consider your own circumstances before buying any cryptocurrency.

Buying Uniswap in Australia: the quick recap

To buy Uniswap in Australia on Digital Surge: create a free account, verify your ID, deposit AUD via PayID or bank transfer, then buy Uniswap. The whole process takes about five minutes, and your Uniswap is held safely in your Digital Surge wallet.

Learn more about Uniswap

On Digital Surge you can see the live Uniswap price and UNI to AUD converter, see other coins in the Decentralised Finance category, or read what cryptocurrency is before you buy Uniswap in Australia.