​Uniswap adds the option to buy NFTs with any ERC-20 tokens

What’s new? On February 22, decentralized exchange (DEX) Uniswap added the option to buy non-fungible tokens (NFTs) with any ERC-20 asset. Since NFT prices are usually set in ETH, this could cause some difficulties, the platform’s team warned. For example, not everyone has enough ETH in their wallet, and exchanging ERC-20 tokens for wrapped ETH (W/ETH) just to buy an NFT is an optional step, the blog says. Pricing out ETH needed to buy an NFT and pay fees can be inaccurate, and users could lose assets as a result.

Uniswap Blog

Uniswap is a decentralized protocol for the exchange of cryptocurrencies, created based on Ethereum in 2018. It uses the native token UNI to provide liquidity. As of February 23, the asset ranks 19th in the cryptocurrency ranking with a capitalization of $5,26 billion and is trading at $6,87, down by 0,17% in 24 hours.

What else does the blog say? The feature is made possible by the new Universal Router contract, which combines token and NFT trades into a flexible and fee-optimized swap router. Universal Router finds the most cost-effective route to exchange an inputted ERC-20 token for the purchase token such as ETH, then settles the trade through Opensea’s Seaport, an OpenSea NFT marketplace protocol for exchanging ERC-721s and ERC-1155s.

On Uniswap v1, one can not buy one NFT for more than one type of token. For example, customers can currently buy two NFTs from the Froggy Friends collection for 500 DAI, but in the next release they will be able to pay with 0,1 ETH and 275 DAI, the developers noted.

Last November, Uniswap became the second-largest platform in terms of daily ETH trading volume, surpassing its nearest rival, the Coinbase exchange. From November 13-14, Binance processed $1,9 billion in ETH pairs with dollars or stablecoins, Uniswap processed $1,1 billion, and Coinbase processed about $0,6 billion.

In late January, the Uniswap community approved Binance’s BNB Chain rollout proposal. A total of 6495 users took part in the vote, with more than 80% supporting the proposed initiative.