As eToro continues to grow its crypto marketplace, we’re excited to announce the launch of Chainlink (LINK) and Uniswap (UNI), now available for trading!
With these new additions, eToro users will have two more options to diversify their crypto portfolios. Each asset comes with it own unique use case, so for those unfamiliar with LINK and UNI, here’s a quick summary:
What is Chainlink?
Launched in 2017, Chainlink is an Ethereum-based decentralized platform that connects smart contracts on any blockchain to data providers, web APIs, enterprise systems, cloud services, and more. Smart contracts, of course, are agreements between two parties that exist on a blockchain, which are executed when predetermined conditions are met (e.g. a payment is made upon the receipt of goods).
The network operates through the use of oracles, software that acts as a middleman between real world data and smart contracts on a blockchain. LINK tokens, meanwhile, are the digital assets used to pay for services on the Chainlink network (just like ether on Ethereum). They can also be used by blockchain operators to stake in the network.
What is Uniswap?
For crypto novices not familiar with the whole swapping ecosystem (whether it’s UNI, SUSHI, or Pancake), a “swap” basically refers to the exchange of one cryptocurrency for the equivalent value of another via a smart contract. Uniswap, an Ethereum-based platform, was built in 2018 as a decentralized crypto exchange (DEX). A DEX differs from a centralized crypto exchange in that it’s a person-to-person exchange without middlemen and transaction fees (other than blockchain fees).
Uniswap users can swap various Ethereum-based tokens known as ERC-20 tokens (e.g., USDT, LINK, DAI) through liquidity pools, which allow them to potentially earn money. After a user provides liquidity through a pair of assets, Uniswap uses the assets as liquidity for traders, allowing the liquidity provider to earn trading fees. UNI, launched in September 2020, is Uniswap’s protocol token.
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