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Token Listing Software Development

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Token Listing Software Development

Token Listing Software Development

Token Development & Listing Services

Premium token development and listing services for startups and businesses looking to create scalable tokens with exceptional security to regulate, track, and trace each token transaction. Here are some of the most important services we provide to crypto enthusiasts all over the world.

Ethereum Token Development

Exclusive ethereum token development services to generate tokens based on ERC721, ERC777, ERC223, ERC827, ERC1155, and other ethereum standards. We have Ethereum blockchain developers who are experts in creating custom ethereum tokens with tamper-proof security solutions.

Tron Token Development

Create tokens on the tron blockchain that use the well-known delegated proof of stake consensus process (POS). It plays a critical role in protecting the tron blockchain network from hacking and attacks. The Tron network is recognized for having extremely low gas fees and quick transactions.

BSC Token Development

Our outright BSC token development services help you launch native BEP tokens which are operating in binance smart chain. Launching BEP-20, BEP-2 tokens results in more revenue generation as the binance chain is the most preferred blockchain network used in recent days among investors.

Solana Token Development

The Solana token creation services lead to the development of tokens that operate by making use of solana blockchain. It uses a PoS (proof of stake) consensus mechanism and handles up to 50,000 transactions per second. SPL token on solana blockchain used in defi exchanges platforms and solana dApps.

Cardano Token Development

Cardano token development is the process of leading to design and development in their native token ADA. Cardano is the first blockchain to introduce a (PoS) consensus mechanism. Creating tokens in cardano gives multi-asset capabilities, interoperability, scalability, and the safest platform to create tokens.

NFT Token Listing Software Development

The Non-fungible tokens are the current sensation, it is a special type of ERC-721 or BEP-721 token that cannot be readily involved in an exchange with other types of tokens. These types of tokens are pegged to a digital asset that remains unaltered. Create NFTs to get into the hot topic of the digital town.

Uniswap Token – UNI

The native token of the Uniswap protocol is UNI, which allows governance rights to its owners. All UNI holders can vote for changes to the protocol. Out of the UNI genesis supply, 60% of the tokens are allocated to the Uniswap community members. The remaining 40% are supposed to be made available to team members, investors, and advisors over the time period of four years.

UNI is available through the following four liquidity mining pools:

ETH/USDT

ETH/USDC

ETH/DAI

ETH/WBTC

UNI holders can vote for the addition of more pools after an introductory 30-day governance grace period. Now that you have gained a basic understanding of Uniswap and its tokens, let’s move ahead to understand how it works.
token-listing-software-development-company-dubai

How does Uniswap work?

Contrary to the traditional architecture of the “order book” model which many crypto exchange platforms use, Uniswap works with the help of the following two components:

  1. Liquidity Pools
  2. Constant Product Market Maker Protocol

Let’s begin by understanding what they mean.

Simply defined, liquidity pools refer to token pools locked in smart contracts. They provide liquidity to facilitate trading. Several decentralized exchange platforms use liquidity pools.
Constant Product Market Maker Protocol

The constant product market maker protocol is a form of the much known automated market maker (AMM) model. Basically, automated market makers are smart contracts that hold liquidity pools. These pools are funded by liquidity providers so that the traders can trade against these pools. Traders pay a fee to the pool in return, which is proportionally divided among the liquidity providers, according to their shares. The constant product market maker protocol works similarly, along with the advantage that any token can be added to Uniswap if it is funded with an equal value of ETH or ERC20 token being traded.

So how does it work?

Liquidity Providers, also known as LPs, form a market by depositing two tokens of equivalent value, which can either be an ETH and an ERC-20 token or two ERC20 tokens. Mostly, these pools are made of stablecoins like DAI. Liquidity providers get liquidity tokens in return, which:

depict their share in the liquidity pool
can be redeemed for the share they represent.

The main idea behind Uniswap is that the total liquidity in the liquidity pool must remain constant. Let’s understand this with the help of an example.

The liquidity pool we’ll take into consideration is the ETH/USDT liquidity pool. Let’s refer to the ETH portion as x and the USDT portion as y. To calculate the pool’s total liquidity (which we will consider as k), Uniswap multiplies these two quantities
x x y = k

So, if you buy 1 ETH for 300 USDT via the ETH/USDT liquidity pool, you increase the USDT portion and reduce the ETH portion of the pool. This implies that the price of ETH will rise because k must remain constant, so the price of ETH is based on how much shift the given transaction/trade causes between x and y. This is the mechanism that determines the pricing. Hence, it is conceivable that with large liquidity pools, it is easier to process large trades as the shift between x and y is lower as compared to smaller liquidity pools.

This mechanism brings us to the concept of impermanent losses. What are impermanent losses? Let’s discuss.

Impermanent Losses of Token Listing

Liquidity providers earn a fee in exchange for providing liquidity for traders to swap tokens. But often, liquidity providers don’t take every aspect into account while providing liquidity to the pools. One such aspect is impermanent losses, which you’ll understand better with the help of an example.

Suppose there is a pool on Uniswap with 10 ETH and 1,000 USDT, and you deposit 1 ETH and 100 USDT in it. Token pairs have to be of equal value, which implies:
Price of 1 ETH = 100 USDT

This implies that you have a 10% share of the pool. The total liquidity here will be 10,000. If a few trades take place and cause a shift in the ratio of USDT and ETH to 2,000 and 5 respectively, the price of 1 ETH will rise to 400 USDT. Why? The reason behind this is precisely what we discussed earlier, i.e., the total liquidity must be constant. So, the arbitrage traders will remove ETH and add USDT to the pool until the ratio stabilizes.

At this price, according to your 10% share, you own 0.5 ETH and 200 USDT (total 400 USDT), which is lesser than what you had deposited (total 500 USDT at this price). The loss here is “impermanent” because as long as you don’t withdraw your funds from the pool, this loss can be recovered or balanced:

when the price of ETH returns to its original value, i.e., 100 USDT.
by earning LP fees over time.

However, if you withdraw your funds at this time, then your loss will become permanent as you’ll only receive a total value of 400 USDT.

Now that you understand the working of Uniswap, let’s discuss how you can list a DeFi token on Uniswap.

How to list a DeFi token on Uniswap?

In order to list your DeFi token on Uniswap, there are a few prerequisites which you must take care of:

Install MetaMask
Deploy your ERC20 token contract to Ethereum mainnet
Deploy your ERC20 token contract to Ethereum mainnet
Send your ERC20 tokens to your MetaMask wallet
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