Uniswap is a decentralized exchange where users can swap cryptocurrency tokens and nonfungible tokens (NFTs). The Uniswap NFT marketplace has handled over 250 million swaps since its inception in 2018. Uniswap’s protocol consists of smart contracts, which are persistent and non-upgradeable at the contract level but can still undergo upgrades and improvements through governance processes. This has facilitated Uniswap and NFT interoperability, making it possible to trade NFTs on several blockchains, including Ethereum, BNB Smart Chain and Polygon.
Uniswap leverages ERC-721 NFT contracts, which offer a unique ID to identify each NFT. These ERC-721 tokens on Uniswap are nonfungible and facilitate the exchanging of NFTs and keeping track of ownership.
The protocol contains a suite of tools, including an NFT aggregator, which facilitates swapping digital assets like Ethereum NFTs on Uniswap. This guide to Uniswap NFT trading explores how users can go about trading digital assets on Uniswap.
Uniswap’s role in NFT exchange
Uniswap has developed a suite of software tools that operate on the Uniswap protocol, facilitating UNFT trading and cryptocurrency swapping. These tools include:
Uniswap app: A mobile app for exploring, sending, swapping and buying NFTs and cryptocurrencies.Uniswap Web app: It does the same job as the Uniswap app but on your desktop or laptop.Uniswap NFT aggregator: An aggregator marketplace that integrates elements of DeFi and NFTs on Uniswap. This tool helps track all listings across major marketplaces and exchanges, helping traders find the best deals.In November 2022, Uniswap launched a new set of smart contracts aimed at enhancing security and optimizing costs within the platform:
Permit 2: Allowed sharing and managing of token approval across different applications, improving security, creating a unified platform and reducing costs.Universal router: Integrated with Permit 2, unifying NFT and ERC-20 swapping in a single swap router. This allows users to swap multiple NFTs and tokens in a single transaction, thereby saving on gas fees.These smart contracts were widely adopted by developer ecosystems within Uniswap, contributing to the platform’s efficiency and effectiveness.
Uniswap aggregates its listings from various marketplaces, including OpenSea, Larva Labs and Foundation, among others. Below is a Uniswap NFT platform tutorial showcasing how to use Uniswap for NFT transactions.
How to carry out NFT transactions on Uniswap
To use Uniswap for NFT transactions, one must go to the Uniswap web app and connect their wallet to initiate transactions.
Buying NFTs on Uniswap
Users can use Uniswap to buy NFTs using any ERC-20 token:
Step 1: Go to the Uniswap Web app and connect your wallet.
Step 2: Click the “NFTs” tab and click the search bar.
Step 3: You can search for an NFT by name or its contract address.
Step 4: After you find the NFT you’re looking for, add it to your bag by clicking “Add to bag.” Add as many NFTs as you want to your bag.
Step 5: Once you are done selecting the NFTs, click “Pay with.”
Step 6: Choose which ERC-20 token you will use to pay the transaction.
Step 7: Select “Pay with.” If the token has a high price impact, you may receive a price impact warning. You may choose “Pay anyway” if you can tolerate the price hit.
Step 8: Choose “Pay.”
Step 9: You will be redirected to your wallet. Confirm the purchase.
Selling NFTs on Uniswap
Listing your NFT for sale on Uniswap can place it on multiple marketplaces. Follow this procedure:
Step 1: Go to the Uniswap Web app.
Step 2: Click the wallet icon to connect your wallet and open your NFT portfolio.
Step 3: Choose “View and sell NFTs.”
Step 4: Search and select the NFT you want to sell and choose “List for sale.”
Step 5: When the “Sell” pop-up appears, click “Continue.”
Step 6: Choose the marketplace where you want to list the NFT for sale.
Step 7: Select the duration for which you want to leave the NFT up for sale. It could be in hours, days, weeks or months.
Step 8: Enter the price you wish to sell the NFT for.
Step 9: Click on “Start listing.”
Step 10: Approve the sale listing in your wallet.
Step 11: Sign the listing for the sale to go live.
Step 12: Done.
How to delist an NFT on Uniswap
If you have listed an NFT for sale but want to cancel it before a sale or the expiry date of the sale happens, follow these steps to delist it from Uniswap. Please note that if you listed it on several marketplaces, you must repeat the process on each of the marketplaces:
Step 1: Find the NFT you want to delist by opening the Uniswap Web app. Connect your wallet by clicking the wallet icon.
Step 2: Click “View and sell NFTs” to find the NFT and the marketplace where you listed it for sale.
Step 3: Choose the NFT you want to delist.
Step 4: Scroll to the “Activity” section below the NFTs.
Step 5: Find the listing transaction. It will give you the details of the marketplace where you listed the NFT.
Step 6: If, for example, you listed the NFT for sale on the NFTX marketplaces, go to the NFTX website. Connect your wallet to the website and delist the NFT. Repeat this last step if you have listed the NFT on other marketplaces.
Sweep an NFT collection
When a user sweeps an NFT collection, this implies they have acquired multiple or all pieces of an NFT collection at the floor price. The floor price represents the lowest price listing of any NFT within the collection. To execute a sweep of an NFT collection on Uniswap, one should follow to the following steps:
Step 1: Navigate to the Uniswap Web app and connect your digital wallet.
Step 2: Utilize the search bar by entering the NFT collection’s name or contract address to locate it. It’s possible to filter NFTs by price range and marketplace or opt to view only the NFTs that are listed.
Step 3: Choose “Sweep.”
Step 4: Uniswap enables individuals to perform a sweep by Ether (ETH) amount, showcasing the lowest-priced listing within that collection.
Step 5: Alternatively, users have the option to sweep by specifying the total amount of ETH they wish to spend on that transaction.
Step 6: The transaction is reviewed in the shopping bag, and clicking “Pay” completes the transaction.
Managing NFT portfolios on Uniswap
On March 22, 2023, Uniswap launched Mini Portfolio, a new way to view and manage your assets on the Uniswap Web app. This feature allows users to connect any wallet to the Uniswap Web app, enabling them to oversee their activities.
NFT swaps on Uniswap
Users can view all token balances and token details on one platform, where they can probe all swaps, price history and total value locked (TVL).
Swap routers execute swaps based on the user’s chosen venue, such as NFT marketplaces or Uniswap pools. They are tasked with finding the best prices while ensuring the gas fees remain as low as possible.
Users can purchase cryptocurrency directly from their Mini Portfolio using any bank or debit/credit card. By selecting the “NFTs” tab, they are able to view their entire NFT collection. Clicking on any item within the collection provides more details about that specific NFT. The details page offers a comprehensive history of the entire collection, including items that have been put up for sale.
NFT liquidity on Uniswap
Users can check the status of their liquidity pool (LP) tokens by clicking on the “Pools” tab. This tab displays all active LP pools and enables users to manage a pool position by selecting any of the pools listed. The Uniswap auto router assists in finding the optimal trade route, as the most advantageous swap price may be sourced from several liquidity pools.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
