This simple tutorial will guide you through the process of adding any standard ERC20 token to the Uniswap decentralized exchange. Using Uniswap, you can sell your tokens in a trustless way to investors who are interested in buying them. If you'd like to watch a video guide, you can watch a short 5 minute video in a video walkthrough section. If you prefer going through step-by-step instructions where we explain every step on the way, keep on reading.
Before we go into details, we would like to offer you an easy way to deploy your ERC20 token using the ERC20 token creator tool we have set up for 'regular' folks who are not Ethereum developers. You can deploy your tokens in just a few minutes!
Uniswap is a protocol for automated token exchange on Ethereum and a decentralized exchange whose mission is to bring decentralized and trustless asset exchange to traders and liquidity providers. It provides a simple user interface for swapping any ERC20 token for ETH and vice versa. It does so by using smart contracts deployed on Ethereum network. It is best used when you want to exchange tokens in less than a minute, without creating an account, and at a current market price. Due to it's simplicity, it gained a huge popularity with casual traders who are not interested in advanced trading tools.
To finish this tutorial, make sure you have the following:
In this video, we first create an exchange for MST (My Super Token) token, then add liquidity pool, then we buy listed tokens using another account, and at the end we remove liquidity pool. Please note how the first account gets 0.05 ETH, while the second account gets 399 MST tokens.
For step-by-step instructions, read on.
First, we need to create an exchange for your token. This tells Uniswap about your token. We are using an example token called MST.
Now that Uniswap knows about your tokens, we need to add initial liquidity for the MST/ETH pair. We need to cover both sides, so we will be depositing both ETH and MST. Depending on how much you deposit of both, the price will be automatically set.
Congrats, you just listed your token to Uniswap exchange. Although your token is now on Uniswap, it will not show up in the tokens menu. You will need to tell your investors about token contract address if they want to buy it on Uniswap.
Here we'll explain how a potential investor can buy your token now that it's listed on Uniswap. The investor is using his own Metamask. Here are the steps:
After the transaction is mined, investor will have MST tokens added to his balance, and ETH funds deducted.
Now that you sold all or part of your tokens to investors, it's time to remove all deposits (liquidity) from Uniswap. Here's how to do that:
Congrats, you just successfully sold your custom tokens over Uniswap. Note that if you sold some tokens, you'll receive more ETH funds and less MST funds than you added to pool.
If you've completed this tutorial, we recommend you follow up with these tutorials: