EToro, the exchange and trading platform, has announced its next addition of corners: soon you’ll be able to find Uniswap’s UNI and ChainLink’s LINK! EToro is the leading social trading platform, enabling budding brokers to exchange ideas and learn from the best.
It’s also about learning to trade, but above all it’s about trading all kinds of possible assets (digital, commodities, goods etc) available on the platform. Today we introduce you to Uniswap and ChainLink, whose corners will soon be joining the platform, much to the delight of users.
eToro
eToro is a trading and brokerage platform. The company is regulated in Europe by the Cyprus Securities and Exchange Commission. Its business has diversified and intensified into crypto-currency trading in recent years. EToro claims to be a secure platform that ensures fast transactions between users.
What’s more, with the introduction of UNI and LINK, EToro has almost 18 types of coins available for trading. This means that a wide range of exchanges, purchases and sales can be carried out on the platform. These are just some of the advantages that have won over the more than 20 million users around the world. That’s twice as many users as 3 years ago. Last year, the company’s turnover increased by 147% to $605 million.
eToro on Wall Street?
EToro has become a benchmark in the world of buying and selling crypto currencies. So much so that it will be making its debut on the Wall Street stock exchange this September under the name eToro Group. The transaction will be worth €210 million, or $250 million from FinTech 5. FinTech is a contraction of the terms finance and technology, and refers to a sector that combines these two fields in order to digitise certain financial services. A further $650 million was invested in eToro’s Wall Street flotation. The stakes involved in eToro’s IPO are numerous, but above all it will enable the company to expand its services and become even more international.
How eToro works
Trading is very simple. First of all, you need to have an account on the trading platform. Keep a careful record of your password, and you can carry out your transactions quickly and at any time! During the transaction, eToro establishes a relationship with the relevant Blockchain according to the tokens chosen. Transaction fees and processing times depend on the blockchain and how it works. EToro also links up with your wallet, where your coins are stored. This is a delicate operation, as eToro has a duty to keep your data confidential and ensure maximum security. To invest, all you have to do is choose the crypto currency of your choice, and you can start with a modest sum depending on your objectives.
Uniswap
Uniswap is a blockchain created in 2018 as well as its currency, UNI. Inspired by Ethereum, Uniswap is one of the pioneers of blockchain in the world of decentralised finance or DeFi. Decentralised finance is a way of doing away with intermediaries when making transactions. The blockchain protocol does not depend on traditional financial intermediaries such as banks, stock exchanges or others. Uniswap is so promising that it is now one of the top 10 crypto currencies on the stock market. The current value of the currency is €26.81.
Uniswap collects users’ cash and places it in pools. Transaction fees are used to remunerate all the users who feed the pools, each time a transaction is added. The protocol follows a process known as the Constant Product Market Maker Model. This protocol is used to determine the price of the currency, using a simple mathematical formula.
This process was invented to ensure that the ratio achieved between the two assets involved in the transaction is regular and stable according to supply and demand. Supply and demand, whether in a decentralised protocol or not, are two major factors in the price variations of a crypto currency. They are also highly unstable elements, causing volatility in the price of a very large number of crypto currencies present on the market.
Uniswap has made a number of changes to its blockchain, enabling this crypto currency to expand more rapidly. A new version, V3, brings all these changes to the protocol. It includes three major innovations. One of them is the application of a feature called concentrated liquidity. This sets a price gauge within which users allocate their funds. Uniswap’s entry into eToro marks a decisive turning point that could prove more than beneficial.
ChainLink
ChainLink is not just a blockchain, but also a currency called LINK, which will soon be available on eToro. This cryptocurrency is going to bring a lot to this trading platform in terms of the way it works and the advantages it offers. ChainLink is the first to offer oracle contracts. What’s more, its currency, the Link, is used to pay for the network’s operating costs. As a result, 35% of tokens have been sold to users.
The supply is admittedly small, but it is generating a lot of demand from investors. Since the start of the year, the value of the currency has followed an exponential growth curve. In January, 1 LINK was worth 0.26 euro cents, whereas today it is worth 31.37 euros. Its entry on eToro should therefore help LINK to increase in value even further.
Oracles contracts
ChainLink is one of the first projects to offer an oracle service. In blockchain technology, an oracle contract is a focus of data that can be used to provide information from the “real” world in smarts contracts. To be more precise, smart contracts or dApps are contracts concluded between users without the intervention of a third party. This applies to various types of contracts and business sectors. For example, they could be real estate, banking or legal contracts.
The first to introduce and create a blockchain that supplies and develops smart contracts is Ethereum. The problem here is that the blockchain does not allow the inclusion of information that is off-chain, coming from external sources, in other words from the “real” world. The data would then have to be downloaded and added to a block by a third party. If this data is no longer viable, this could compromise many operations and therefore the proper functioning of the blockchain.
This is where Oracle comes in, to check the reliability of the external data that is added. The oracle will draw its sources and information from multiple sites, enabling it to always guarantee the viability and presence of the information on the blockchain. The oracle is therefore useful because it does what the blockchain alone cannot do. It is therefore able to carry out on-chain contracts with great precision and security. While oracle contracts are centralised, the ChainLink blockchain protocol is completely decentralised.
