Uniswap, a decentralized exchange, offers users the ability to trade cryptocurrency tokens and nonfungible tokens (NFTs). Since its launch in 2018, the Uniswap NFT marketplace has processed over 250 million swaps. The protocol utilizes smart contracts, which are persistent and non-upgradeable at the contract level but can still be upgraded and improved through governance processes. This feature enables Uniswap to have interoperability with NFTs, allowing users to trade them on various blockchains such as Ethereum, BNB Smart Chain, and Polygon.
Uniswap uses ERC-721 NFT contracts, which provide a unique ID for each NFT. These tokens are nonfungible and enable the exchange of NFTs while keeping track of ownership. The protocol also includes an NFT aggregator, which allows users to swap digital assets like Ethereum NFTs on Uniswap. This guide will explore how users can engage in NFT trading on Uniswap.
Uniswap has developed several software tools that operate on its protocol to facilitate UNFT trading and cryptocurrency swapping. These tools include the Uniswap app, a mobile application for exploring, sending, swapping, and buying NFTs and cryptocurrencies. Additionally, there is the Uniswap Web app, which offers the same functionalities on desktop or laptop devices. The Uniswap NFT aggregator is another tool that integrates elements of decentralized finance (DeFi) and NFTs. It helps track listings across major marketplaces and exchanges, assisting traders in finding the best deals.
In November 2022, Uniswap introduced new smart contracts aimed at enhancing security and optimizing costs within the platform. The Permit 2 contract allows for the sharing and management of token approval across different applications, improving security and reducing costs. The Universal router, integrated with Permit 2, enables the swapping of NFTs and ERC-20 tokens in a single transaction, resulting in lower gas fees. These smart contracts have been widely adopted by developers within the Uniswap ecosystem, contributing to the platform’s efficiency and effectiveness.
Uniswap aggregates listings from various marketplaces, including OpenSea, Larva Labs, and Foundation. The following tutorial demonstrates how to use Uniswap for NFT transactions.
Buying NFTs on Uniswap:
1. Go to the Uniswap Web app and connect your wallet.
2. Click the “NFTs” tab and use the search bar to find the desired NFT.
3. Add the NFT to your bag by clicking “Add to bag.”
4. After selecting all the desired NFTs, click “Pay with.”
5. Choose the ERC-20 token you wish to use for the transaction.
6. Select “Pay.” If a token has a high price impact, you may receive a warning but can still proceed.
7. Confirm the purchase in your wallet.
8. Once the transaction is completed, you have successfully bought the NFT.
Selling NFTs on Uniswap:
1. Go to the Uniswap Web app and connect your wallet.
2. Click the wallet icon to open your NFT portfolio.
3. Choose “View and sell NFTs.”
4. Search for the NFT you want to sell and select “List for sale.”
5. In the “Sell” pop-up, click “Continue.”
6. Choose the marketplace where you want to list the NFT for sale.
7. Set the duration for the listing.
8. Enter the desired selling price.
9. Click “Start listing.”
10. Approve the sale listing in your wallet.
11. Sign the listing for the sale to go live.
12. The NFT is now listed for sale.
To delist an NFT on Uniswap, follow these steps:
1. Open the Uniswap Web app and connect your wallet.
2. Click “View and sell NFTs” to find the NFT and the marketplace where it was listed.
3. Select the NFT you want to delist.
4. Scroll to the “Activity” section below the NFTs.
5. Locate the listing transaction and note the marketplace details.
6. Visit the corresponding marketplace’s website and delist the NFT. Repeat this step for each marketplace where the NFT was listed.
Sweeping an NFT collection on Uniswap:
1. Go to the Uniswap Web app and connect your wallet.
2. Use the search bar to find the desired NFT collection.
3. Choose “Sweep.”
4. Select the lowest-priced listing or specify the total amount of ETH you want to spend.
5. Review the transaction in the shopping bag and click “Pay” to complete it.
Uniswap also offers the Mini Portfolio feature, launched on March 22, 2023, which allows users to view and manage their assets on the Uniswap Web app. Users can check token balances, token details, and view their entire NFT collection. The “Pools” tab enables users to manage their liquidity pool (LP) tokens and find the most advantageous swap prices using the Uniswap auto router.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.