NFT Trading Guide: Uniswap Basics

Uniswap is a decentralized exchange that allows users to trade cryptocurrency tokens and nonfungible tokens (NFTs). Since its launch in 2018, the Uniswap NFT marketplace has facilitated over 250 million swaps. The protocol is built on smart contracts that are non-upgradeable at the contract level but can still be improved through governance processes. This has enabled interoperability between Uniswap and NFTs, allowing users to trade NFTs on various blockchains like Ethereum, BNB Smart Chain, and Polygon. Uniswap utilizes ERC-721 NFT contracts, which provide a unique ID for each NFT, making it easy to track ownership and exchange NFTs.

Uniswap offers a suite of tools, including a mobile app, a web app, and an NFT aggregator. The mobile and web apps allow users to explore the marketplace, send and swap NFTs and cryptocurrencies. The NFT aggregator integrates elements of decentralized finance (DeFi) and NFTs, allowing traders to track listings from different marketplaces and find the best deals. In November 2022, Uniswap introduced new smart contracts to enhance security and reduce costs. These contracts include Permit 2, which improves token approval management, and Universal router, which combines NFT and ERC-20 swapping in a single transaction, saving on gas fees.

Uniswap aggregates listings from various marketplaces, including OpenSea, Larva Labs, and Foundation. To use Uniswap for NFT transactions, users need to connect their wallet to the web app. Buying NFTs on Uniswap involves searching for the desired NFT, adding it to the bag, selecting the payment token, and confirming the purchase. Selling NFTs on Uniswap requires listing the NFT for sale, choosing the marketplace, setting the duration and price, and approving the listing in the wallet.

To delist an NFT from Uniswap, users can find the NFT in their NFT portfolio, locate the listing transaction, and follow the delisting process on the respective marketplace. Sweeping an NFT collection on Uniswap means acquiring multiple or all pieces of an NFT collection at the floor price. Users can search for the NFT collection, choose the sweep option, and complete the transaction by specifying the desired ETH amount or the total amount of ETH to spend.

Uniswap also introduced a feature called Mini Portfolio, which allows users to view and manage their assets on the web app. Users can view their token balances, token details, and swap history. NFT swaps on Uniswap can be executed through swap routers, which find the best prices and minimize gas fees. Users can also check the status of their liquidity pool tokens and manage their positions on the Pools tab. The Uniswap auto router helps users find the optimal trade route for the most advantageous swap price.

Uniswap provides a user-friendly platform for trading NFTs and cryptocurrencies, with a range of tools and features to enhance the trading experience.