You can now exchange DAM into ETH or any other ERC-20 token! Uniswap is a simple, smart contract interface for swapping ERC-20 tokens. It is an amazing decentralized tool fantastic for the Ethereum system and seamlessly integrates with Datamine token.
To follow this guide, you need to have MetaMask installed. See our guide on installing MetaMask.
To use DAM with Uniswap, start by visiting: https://uniswap.exchange/
In the top right-hand corner, click: Connect to wallet.
You will have several wallets to choose from. We recommend that you use MetaMask. Select MetaMask.
After unlocking your MetaMask wallet, you will see the following screen. Press connect. (If you have not connected to Uniswap before, you will be asked to authorize a small gas fee in order for Uniswap to interact with your MetaMask wallet). This is normal.
After unlocking your wallet, you will now see your updated ETH balance and ETH address on Uniswap.
Before attempting to swap DAM or earning trading fees by becoming a liquidity provider, let's take a step back and check out the DAM page on Uniswap.
Start by going to: https://uniswap.info/home
Here, you will see the exchange home page that contains total liquidity and 24 hour trading volume. Pretty neat. Remember, Uniswap is decentralized. This means peer-to-peer trading of cryptocurrencies with NO central authority.
Let's find DAM on Uniswap. In the search bar, type in: DAM. You will see the ETH-DAM Pair on your screen (skip for now), and a bit further down Datamine (DAM). Click on Datamine (DAM). If you do not see Datamine, you may have to search for the token by using the smart contract address: 0xF80D589b3Dbe130c270a69F1a69D050f268786Df
You were sent to: https://uniswap.info/token/0xf80d589b3dbe130c270a69f1a69d050f268786df
This is the official URL for Datamine on Uniswap. Here you will see the DAM token price, total liquidity, with 24 hour trading volume and number of transactions.
Now let's check out the ETH-DAM trade pair on the bottom of your screen.
You were sent to: https://uniswap.info/pair/0x447f8d287120b66f39856ae5ceb01512a7a47444
This is the official pair-address, pairing DAM with ETH on Uniswap. You can verify it on the chain here: https://etherscan.io/address/0x447f8d287120b66f39856ae5ceb01512a7a47444
You'll find some very helpful information on this page. You will see the Pooled Tokens feature. In the screen shot above, there are 5.3065 ETH and 49,675 DAM tokens in the ETH-DAM liquidity pool. You can think of a liquidity pool as tokens that sit on the exchange. These tokens are deposited by individuals who become liquidity providers (a person who deposits equivalent amounts of ETH and DAM to Uniswap) in order to allow other users to trade the token.
Liquidity providers receive a fee from users who conduct swaps.
The Uniswap platform charges a 0.3% flat fee when users trade (aka swap) ERC 20 tokens. Liquidity providers get a proportional share of these transaction fees based on the amount of liquidity provided. Fees are distributed among liquidity providers proportional to their contribution. They can be collected at any time, but are automatically reused in the liquidity pools until they are collected. You will earn a bit of DAM and ETH per swap transaction.
When somebody wants to trade DAM to Ethereum on Uniswap, your liquidity token is used. So, your balance may shift more towards Ethereum, or it may shift more towards DAM based on the trades. So, if somebody wants to sell DAM and take Ethereum out, your Ethereum liquidity might shrink, and your DAM liquidity might go up. It is a dynamic process.
If I provide liquidity, can one of my assets to disappear entirely?
In short, no. You supply your pair (in this case DAM/ETH). As an example, let's say you deposit 1 ETH and 1 DAM. You receive 1 liquidity token for the ETH/DAM pool. People trade with the pool, not your tokens directly. Your 1 liquidity token allows you to withdraw a ratio of ETH and DAM in the future.
This ratio starts at 1:1, but changes with the market. For example, if more people are buying DAM in exchange for ETH, you could end up with 1.5 ETH and 0.5 DAM. If purchasing continues, you could end up with 3 ETH and 0.1 DAM, for example. And you'd still benefit from collecting the swap fees.
For a more technical explanation, we recommend reading: A Graphical Guide for Understanding Uniswap
Let's try adding Liquidity to the ETH-DAM Pair. Click: + Add Liquidity
(Note, this step is optional). If you want to learn about swapping tokens instead, skip to step 12.
In order to Add Liquidity, you need to have ETH AND DAM in your wallet. You cannot add liquidity if you only have DAM without ETH or ETH without DAM.
You can quickly figure out how much DAM or ETH you can add by clicking the MAX button. For a certain DAM amount, the equivalent ETH will be calculated based on current market price. Conversely, the same holds true for ETH. For a certain amount of ETH, you will be required to deposit an equivalent monetary value of DAM token based on the market price.
If you press the Max button for DAM, you may find that you don't have enough to add to the liquidity pool. This is okay. Just press the Max button for ETH instead, or enter your own custom values.
Confirming Liquidity. In this example, we've added 495 DAM and 0.053 ETH to the ETH-DAM Uniswap Liquidity pool. In order to confirm your transaction, you will need to follow the instructions in MetaMask.
Your transaction will be submitted after confirming the transaction on MetaMask.
Initially pending, then confirmed.
You can then see your pooled Liquidity by visiting: https://uniswap.exchange/pool
You can add or remove your pooled ETH/DAM token(s) anytime you wish. Congratulations, you are now a Uniswap liquidity provider, and will passively earn exchange fees (0.3%) for every single swap transaction that involves DAM. How cool is that. For more information on becoming a liquidity provider, see Step 8.
Swapping DAM token. Be sure you are on: https://uniswap.exchange/swap
You can use this menu to swap DAM into ANY ERC-20 token. You can also swap ANY ERC-20 token into DAM. Cool, right? The calculation is based on the current market price and uses the following input: 1 ETH = quantity of DAM.