When investors buy tokens from the pool, they pay a fee of 0.3% each time. They are added to the pool in real time and can be paid out along with the initial investment at any time. As long as no payouts are made, the fees thus increase the amount of money that can be traded through the pool and in turn potentially generate additional fees. However, they are also subject to the same risk as the original investment. If you want to buy Uniswap on the exchange, then we advise you to read about the kucoin review on the wellcrypto.io website to find out the best exchange options.

In principle, Uniswap smart contracts also provide for the possibility of reducing the commission share for investors to 0.25% in order to pay out 0.05% to UNI token holders and fund further development of the platform. However, at the moment this feature is not activated, and it is not known if and when this will happen.
Risks in using Uniswap due to divergence losses

The developers of Uniswap rely on arbitrage trading to ensure that the cryptocurrencies contributed to the liquidity pool are always in balance, and that the pool thus accurately reflects the current market price. Thus, depositing funds into a liquidity pool can be a way of hedging the exchange rates of two currencies against each other. Therefore, you can read about okx pros and cons and, perhaps, with the help of this exchange, decide to buy yourself UNI.

For example, if a user invests in a liquidity pool that trades Ether and the stablecoin Tether (USDT), it provides a weaker exposure to exchange rate fluctuations than simply holding an Ether position. But in times of rising exchange rates, this may mean that the ratio of assets contributed to the pool is gradually shifting towards tokens, which increase in value less. As a result, investors do not participate in price increases to the same extent as other market participants who simply hold the corresponding token.

In theory, a 0.3% fee per trade should be enough to fully offset these potential divergence losses – in practice, however, it may happen that depositing funds into a pool is less profitable than simply owning tokens. In principle, such losses can be recovered if the prices of the two cryptocurrencies move in the opposite direction. But this does not at all mean certainty; after all, a long-term shift in the exchange rate may also occur. Therefore, find out what the commission is on localbitcoins комиссия using the site wellcrypto.io, and buy yourself during the fall of the cryptocurrency.

Ultimately, this risk is the opportunity cost associated with providing liquidity. Anyone investing in the Uniswap pool should understand that in the worst case, a deposit could mean a partial sale of one of the two tokens at the current market price. The more stable the price ratio of the two traded tokens, the lower the risk.