Uniswap is a decentralized trading platform based on Ethereum supporting the swap of ETH and ERC-20 tokens. This AMM-based platform allows anyone to add any ERC-20 trading pairs and earn rewards from providing liquidity.
In July 2021, Uniswap v3 was deployed on Optimism, a Layer 2 network through which transactions can be confirmed immediately with low gas fee, which is different from Layer 1.
How to Use Uniswap on Optimism?
- Switching your ETH wallet from Ethereum to Optimism.
- Preparing sufficient ETH in the Optimism wallet to pay gas fee for follow-up transactions. There are two ways to deposit ETH in the Optimism wallet, namely through exchanges or bridges. Check out the details in How to use Optimism with imToken?
Open the Optimism wallet, swipe the function bar to the left and click "DApp" and scroll down the page to find Uniswap(Arbitrum). You can launch the DApp after confirming your address is public to the site.
Set the type and amount of tokens to be exchanged in the input box, click "Swap" - "Confirm Swap" and enter the password to complete the exchange. Here is an example of swapping ETH for USDC:
Note: Except for ETH, you need to first click “Approve” for authorizing the swap of tokens.
Providing and Removing Liquidity
Why Should We Provide Liquidity?
You can get a share of the trading fees by providing liquidity to the pools in the protocol.
How to Provide Liquidity?
1. Click “Pool” at the bottom of the page, and click “+ New Position”. Choose a token pair to provide liquidity, such as ETH and USDC, and enter the amount.
2. Click “Approve” for the authorization and click “Confirm” to preview all the details. After checking the information, you can click “Confirm Supply” to become a liquidity provider.
How to Remove Your Liquidity?
Enter the pool page to view your positions, choose the liquidity pool that you want to quit and click “Remove Liquidity”. Then, set the amount that you want to remove and click “Remove”. Click “Remove” again after you have checked all the information.
For best security on large amounts of crypto, consider our hardware wallet, imKey. imKey also allows users to use Uniswap on Optimism and supports Layer 2 ecosystem.
Risk Warning: The content of this article does not constitute any form of investment advice or recommendation. imToken does not make any guarantees and promises for the third-party services and products mentioned in this article, nor assume any responsibility. Digital asset investment has risks. You should carefully evaluate these investment risks and consult with relevant professionals to make your own decisions.