Decentralized finance (DeFi) platforms like Uniswap have opened up a world of peer-to-peer trading that’s fast, accessible, and transparent. But if you’re new to DeFi, you might be asking: what kind of tokens can I actually trade on these platforms? Let’s break it down in plain language.
1. ERC-20 Tokens – The Standard Players
Most tokens you’ll find on Uniswap are ERC-20 tokens, which are built on the Ethereum blockchain. These include:
Ethereum (ETH)
Although technically not an ERC-20, ETH is widely used on Uniswap and can be traded with wrapped ETH (WETH).
Chainlink (LINK)
A popular decentralized oracle token.
Uniswap (UNI)
The native token of the Uniswap platform.
Aave (AAVE)
A token used in a decentralized lending protocol.
Basically, if it’s an Ethereum-based token, chances are high that you can find it on Uniswap.
2. Stablecoins – The “Digital Dollars” of DeFi
Stablecoins are cryptocurrencies that are pegged to real-world assets like the US dollar. These are popular for traders who want to avoid wild price swings. Some common ones on Uniswap include:
- USDC (USD Coin)
- DAI (a decentralized stablecoin)
- USDT (Tether)
They’re often used as trading pairs or to park funds during volatile market conditions.
3. Altcoins and New Project Tokens
One of the exciting parts of Uniswap is that anyone can list a token, which means you’ll find a lot of emerging and experimental projects here too. These include:
- Governance tokens for new DeFi apps
- Gaming and metaverse tokens
- Meme coins and community tokens
Just be careful—because there’s no centralized review, always research a new token before trading to avoid scams or “rug pulls.”
4. Wrapped Tokens
Wrapped tokens are versions of cryptocurrencies from other blockchains that are made compatible with Ethereum. A few examples include:
Wrapped Bitcoin (WBTC)
A way to use Bitcoin on Ethereum’s network.
Wrapped AVAX, SOL, or MATIC
Let users bridge tokens from other chains.
These tokens allow for cross-chain functionality and are increasingly common in DeFi.
Final Thoughts: The DeFi Token Buffet
On Uniswap, you’re not limited to a short list of pre-approved tokens. You can explore hundreds (if not thousands) of tokens – from well-established assets to brand-new DeFi projects. Just make sure to do your due diligence, especially with unknown or low-volume tokens.
Whether you’re trading Ethereum, swapping into stablecoins, or discovering the next big altcoin, Uniswap gives you the flexibility and freedom to trade directly from your wallet.