The acquisition of the NFT marketplace Aggregator Genie (1) by Uniswap (2) furthers its mission to acquire universal ownership and exchange on the platform.
Uniswap is building its product line by introducing integrated NFTs with the Uniswap Web App (3). In addition, future integrations are to be developed, including developing API and widgets.
In 2019, Uniswap launched its first NFT collaboration, the Unisocks (4). Those were backed by real-world assets, which offered liquidity pools.
While delving into Defi technology and collaborating on an NFT project Uniswap planned an airdrop of USDC to the historic Genie users as a representation of the new acquisition to their users.
The collaboration for Unisocks was a resemblance of their viewing angles towards NFT as an important gateway to Web3 and not a separate ecosystem.
Genie is well known in the NFT community as the first NFT marketplace aggregator on Ethereum. It was the first place where you could sell, buy, and even discover more NFTs across mass marketplaces.
Additionally, it provides several incentives and advantages for customers, like a 40% reduction in gas costs on a batch of NFTs across key marketplaces.
Although many metaverse-related companies are trying to establish progress in the NFT market, Game fiction and gaming NFTs are a transparent sign of growth in the community and the development of the metaverse aspects of cryptography (5) and the web3 (6).
What is Uniswap?
Uniswap is an automatic liquidity protocol that is developed in a system that cannot be upgraded to smart contracts on the Ethereum blockchain with its governance token, UNI.
Licensed under GPL (7), Uniswap obviates the requirement of trusted intermediaries, censorship resistance, security, and decentralized prioritizing.
A Uniswap smart contract reserves ERC-20 tokens for pairing and managing liquidity. To obtain and become a liquidity provider (LP), a user is required to deposit an equivalent value of tokens to obtain pool tokens.
Uniswap is one of the largest cryptocurrency projects by market capitalization which operates and makes it compatible with the ERC-20 token and also the MetaMask (8) and MyEtherWallet (9).
It is open-source, which allows anyone to copy the code and create their decentralized exchange, and even allows them to list tokens on the exchange free of cost.
It is a centralized exchange and listing them has a higher charge and additional fees, which is said to be a notable difference that clears them from others.
Its decentralized exchange (DEX) nature allows users to have absolute control over their digital property and digital assets. While on a centralized exchange, a user has to give access and control of their private keys and passwords to log into their internal database.
Gaining control of assets and property allows one to eliminate the risk of losing it through a centralized exchange ever being hacked.
Uniswap is currently the fourth-largest decentralized financial institution (Defi) with an estimated worth of $3 billion worth of crypto locked in its protocol.
How does Uniswap work?
It runs on two smart contracts; "Exchange" and "Factory" contracts. automate computer programs that are designed to perform specific regulatory functions that meet certain conditions and functions.
The factory smart contract is utilized to add new tokens to the platform.
The exchange smart contract is utilized to facilitate all the token swaps, exchanges, and trades on the platform. Any token can be swapped or exchanged with another on the Uniswap v.2 and v.3 platforms (10).
The world is surely revolving fast and everybody wants everything at the click of a finger. Online shopping has now been so advanced that you get everything on a single platform where you can even try out clothes through 3D AR technology, although it is a very different topic.
Just like that, Genie is the first-ever Ethereum-based NFT marketplace, an NFT shopping place that offers multiple marketplaces at one destination. where users can buy, sell, and trade across major NFT marketplaces all in one transaction
Genie supports ERC-721s on OpenSea (11), NFT20 (12), Rarible (13), and NFTX (14), with ERC-1155 (15) to be introduced soon.
The only tokens you can list or check on Genie are Ethereum-based tokens, and there are no tokens of any other crypto on the platform. However, you get the option to re-list your NFTs on Genie in ETH.
With a volume of 5,500 ETH and over 1,600 transactions and 631 users (16), Genie Swap has been through intensive beta testing since August.
Benefits for Genie users:
- one interface but includes all major marketplaces.
- buy, sell, and even trade major NFT in a single transaction or batches.
- Gas savings on bulk purchases
- Efficient routing
Uniswap & Genie
NFTs used to be just about the visual and digital representation of art. The current reality has overcome the definition, and NFTs have become a commodity to acquire profits. There have been more crypto users investing in NFTs than ever before.
Although the NFT and crypto universe has been through major ups and downs, Uniswap recently acquired the marketplace aggregator Genie. This decentralized exchange protocol is also a startup funded by firms such as Andreessen Horowitz and Paradigm (17).
Users already use the Uniswap protocol for swapping a variety of tokens and are assumed to have the same with non-fungible tokens with a mix. Genie allows its users to list the NFTs available all over the major marketplaces and permits them to trade, buy, and even sell.
Uniswap’s team suggested they will soon be launching Uniswap NFT by this fall, a vertical product on their platform. Uniswap bets on the diversification of the NFT marketplaces over the future.
Many users continue to prefer to buy, trade, and sell at high-volume marketplaces such as OpenSea (18), which competes with LooksRare (19) and Magic Eden (20). It has surely rolled out as a huge market leader in the NFT marketplace.
The timing of this acquisition sure raises many questions as the crypto market has plummeted broadly. According to DappRadar (21), NFT transactions have tanked by more than 66%.
One of the most well-liked decentralized exchanges in the NFT market, Uniswap, is now expanding. Even the NFT markets, which allow developers to directly integrate into the market-leading exchange, might be handled by this exchange.