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Does Uniswap Use Chainlink (Explained)

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Most cryptocurrency projects have a connection with each other. That’s how many ecosystems are born and thrive in the world of cryptocurrencies.

For example, many ERC20 tokens can be traded or swapped on Uniswap. One example is Chainlink (LINK)

But you may wonder, does Uniswap use Chainlink? Read on to find the answer to this and other questions.

Does Uniswap Use Chainlink?

No, Uniswap doesn’t use Chainlink.

The only link between Uniswap and Chainlink is that both are ERC20 tokens.

Uniswap is a decentralized exchange and Automated Market Maker that allows you to swap and trade ERC20 crypto tokens. You can also provide liquidity and earn rewards. 

On the other hand, Chainlink is a decentralized blockchain network that hosts hybrid smart contracts. The LINK token offers security between smart contracts and services provided offline.

Chainlink allows you to understand the blockchain by breaking it into a comprehensive language. It also serves several purposes in various industries in the real world, such as DeFI, NFTs, and gaming.  

What Chain Does Uniswap Use?

Uniswap runs on the Ethereum blockchain. As technologies based on the ERC-20 standard, both the UNI token and the Uniswap platform depend solely on the Ethereum network.

Uniswap uses Ethereum’s ERC-20 as its base blockchain to manage operations on the network When using Uniswap, everything revolves around Ethereum. Here’s how Uniswap runs on Ethereum: 

  • To start using Uniswap, you must buy some ETH before swapping it for your preferred ERC-20 token. 
  • All the gas fees paid on the Uniswap platform use ETH. 
  • The TPS of Uniswap relies on the speeds of Ethereum.
  • Uniswap relies on the security framework of Ethereum to keep its transactions and framework secure.

Does Uniswap Use Link?

Uniswap does not use Link. However, you can trade Chainlink on the Uniswap platform.

Uniswap allows users to sell or swap more than 1600 ERC20 tokens, including Chainlink. LINK is a transactional token real-world institutions use to complete payments on the Chainlink network.  

Is Uniswap Better Than Chainlink?

Uniswap and Chainlink have different purposes, so neither is better than the other. But there are some differences between the two: 

Definition/Purpose

While Uniswap deals with the swapping and exchange of cryptocurrencies, Chainlink hosts smart contracts and offers a link between real-world applications and blockchain technology.

Although both are DeFi projects, Uniswap helps you trade your crypto for other cryptos, and Chainlink helps to bridge the gap between real-world problems and blockchain technology.

Purpose of Token 

UNI token’s primary use is to offer governance. Once you hold UNI, you can propose, suggest or vote for different ideas on the Uniswap platform. 

For example, any participant with over 0.25% can put in a submission to propose a new idea or recommend changes to the Uniswap community or framework. Also, a 0.25% lets you support or vote against an idea raised by other users. 

LINK token plays a crucial role in making payments for transactions on blockchain applications. It mainly favors businesses over single investors. Businesses running dApps for finance and payments need Chainlink to secure and facilitate the payments. 

Earning Through the Network

You can choose to buy UNI or LINK to earn interest or grow your crypto portfolio. These two ERC20 tokens reward their investors differently.

With UNI, you earn by providing liquidity or staking. Most investors use UNI to provide liquidity on Uniswap and gain returns from the commissions and fees charged as users swap and trade. Also, you can stake your UNI tokens or any ERC-20 token and profit from its market price gain.

For LINK, investors earn income by running nodes on the network. Any advanced user can run a node on the Chainlink network, and that doesn’t need heavy equipment.

You can run a node by downloading the required software to a computer that meets the minimum speeds and storage requirements. 

Here’s how to run a node on Chainlink:

  • Download the Docker-CE software
  • Ensure your computer has more than a single-core and over 1GB of RAM.
  • Get an Ethereum client to connect to.

Running a node is more technical than providing liquidity. Even so, you will get potentially higher rewards for running a node on Chainlink than providing liquidity on Uniswap.

Market Share

Uniswap (UNI)

As of this writing, here’s the market share status for UNI:

  • Uniswap Price: $6.10
  • Rank: 18th
  • Volume Traded in 24hrs: $171,654,482
  • Total Locked Value: $4,995,002,280
  • Market Cap: 4,484,395,348
  • Market Dominance: 0.49%
  • Circulating Coins Supply: 734,135,451 UNI
  • Max Supply: 1,000,000,000 UNI

Chainlink (LINK)

Today, here’s the market share status for LINK:

  • Chainlink Price: $6.26
  • Rank: 23rd
  • Volume Traded in 24hrs: $292,373,218
  • Market Cap: 2,925,203,291
  • Market Dominance: 0.32%
  • Circulating Coins Supply: 467,099,971 LINK
  • Max Supply: 1,000,000,000 LINK

Should You Invest In Uniswap?

Depending on your needs, you may find investing in Uniswap lucrative in two ways. 

Governance

You can invest in Uniswap to participate in the governance of the protocol. Holding UNI tokens lets you take part in deciding the future of the DEX. Also, this gives some investors a sense of achievement as part of a community. 

LP to the network

Providing liquidity to the Uniswap platform is one of the best investment forms for Uniswap investors. By providing liquidity, you give other users on the forum a chance to trade or swap crypto against cryptos. As an investor, the more liquidity you provide, the better your earnings from the transactions carried out. 

Can You Connect Coinbase To Uniswap?

Yes, you can connect the Coinbase wallet to Uniswap. 

Working with Uniswap is straightforward as it supports most Ethereum crypto wallets. One of them is Coinbase which is a popular cryptocurrency wallet. Coinbase offers you a position to first buy ETH before swapping it to UNI or any other ERC-20 token. 

Here’s how you connect a Coinbase Wallet to Uniswap:

  • Open a Coinbase account on the Coinbase website.
  • Pick a payment method to feed money into your Coinbase account.
  • Buy yourself some ETH.
  • Choose between mobile and desktop methods for connecting your Coinbase to Uniswap.

How to connect via a Coinbase Wallet desktop version:

  • Find and download a MetaMask browser extension. 
  • On the Uniswap interface, click on the Connect button at the top. 
  • Once you connect to Uniswap, copy the link address.
  • Head to your Coinbase account and sign in. 
  • Pick your ETH crypto-wallet.
  • Decide the amount of ETH you’d like to transact, and now paste the link address copied earlier. 
  • You can now go to Uniswap and begin making your trades. 

Here’s how to connect to Uniswap using Coinbase’s Mobile application

  • Download the Coinbase app and Coinbase Wallet app.
  • Open your Coinbase Wallet.
  • Head to the settings.
  • Click on the ‘Connect to your Coinbase account’ button.
  • Finish connecting the Coinbase Wallet app with your Coinbase account.
  • Choose the ERC-20 tokens you want to trade and enter the transaction information.
  • Now, you can swap or trade the tokens.

Final Thoughts

As we have established above, Uniswap does not use Chainlink. However, both are ERC20 tokens, and you can swap Chainlink on Uniswap. Besides that, these two projects are independent of each other. They serve two different purposes, and none is better than the other.