Down the Rabbithole: Crypto-Native Starter Pack
===
###### tags: rabbithole
[TOC]


>Total time taken: 30 min
Total cost: $86.88USD
You'll get: a super cute NFT by @BrodyHughes

You'll learn:
1. [Swapping on Uniswap v3](https://hackmd.io/2sVhAFzXR7yZOKAMCVazOA?view#Task-1-Swapping-on-Uniswap-v3)
2. [Bridging to Polygon](https://hackmd.io/5R24NzVeSmytgSZUqaqQ0g?view#Pre-Task-Bridging-Eth-and-Polygon)
3. [Supplying assets on Aave](https://hackmd.io/5R24NzVeSmytgSZUqaqQ0g?view#Task-1-Lending-Assets-on-AAVE)
4. [Registering an ENS name](https://hackmd.io/2sVhAFzXR7yZOKAMCVazOA?view#Task-3-Register-an-ENS-name)

# What is Uniswap?
Now, just explaining Uniswap itself is a massive rabbithole. You'll need to know what an AMM is, liquidty provision, bonding curves, ...
Let's get started then!

>Uniswap pools minimize this misalignment between buyer and seller market orders by creating a deep reservoir of assets to trade, which in turn helps to mitigate potential market liquidity issues. Additionally, Uniswap’s automated market maker technology algorithmically analyzes liquidity pools to offer the most appropriate prices for specific trades.

Have no fear, there is no need to rely on centralized exchanges anymore! Uniswap lets you exchange/trade your assets from liquidty pools.

>Uniswap v1 was launched in November 2018 as a proof of concept for automated market makers (AMMs), a type of exchange where anyone can pool assets into shared market making strategies.
In May 2020, Uniswap v2 introduced new features and optimizations, setting the stage for exponential growth in AMM adoption. Less than one year since its launch, v2 has facilitated over $135bn in trading volume, ranking as one of the largest cryptocurrency spot exchanges in the world.

We're at Uniswap v3 and they have a few new features such as:
- improved capital efficiency
- higher returns on capital
- low-slippage trade executions
- liquidity providers can increase exposure to preferred assets
- liquidiy providers can sell one asset for another

But okay what's an AMM?
> We can visualize the liquidity provided by any AMM as a curve in “tick space.”

That's not very helpful, but here's a graph.

Basically, individuals can put up their assets in these pooled funds where people can use that to trade one asset for another. The 'ticks' are the prices that people trade the asset at.

> In Uniswap v3, anyone can create a position to provide some amount of liquidity—L—within a price range between two ticks. Tick indexes (t_i) are logarithmic in price, and specify the lower and upper prices at which that position provides liquidity.

For this, individuals who put up their assets can choose the price range they would like to sell their assets at.

Anyway there's a lot to get into that's way beyond the scope of this post. You can take a look at how [Uniswap's community has been governing itself](https://otherinternet.notion.site/Uniswap-Research-Report-Discord-Governance-Community-eb545f60b0ba4c30af066ca1a855e0fe), how [Uniswap votes](https://snapshot.org/#/uniswap), and [learn about their governance](https://gov.uniswap.org/).

References:
1. [What is Uniswap? A Breakdown](https://www.gemini.com/cryptopedia/uniswap-decentralized-exchange-crypto-defi)
2. [Introducing Uniswap V3](https://uniswap.org/blog/uniswap-v3/)
3. [Uniswap v3: The Universal AMM](https://www.paradigm.xyz/2021/06/uniswap-v3-the-universal-amm/)

## Task 1: Swapping on Uniswap v3
1. Connect your metamask account
2. Select your asset to swap. I used GRT from my previous rabbithole quest
3. Authorize uniswap to use your GRT (or token of your choice) This cost me 0.002544ETH, $8.14USD
4. Swap! This cost me 0.006256ETH, $20.02USD. I set it at low priority but it still happened quite fast.

Completed at 8.26PM, Redeemed at 8.31PM

# What is Aave
I previously wrote about it [here](https://hackmd.io/5R24NzVeSmytgSZUqaqQ0g#What-is-AAVE-Polygon) but I'll add a snippet for your convenience.

> Aave is a decentralized finance (DeFi) protocol that lets people lend and borrow cryptocurrency without having to go through a centralized intermediary. When they lend, they earn interest; when they borrow, they pay interest. (Decrypt)

## Task 2: Supply asset on Aave on Polgyon
There's a 'hidden' pre-task to bridge to polygon and [here's how you can do it.](https://hackmd.io/5R24NzVeSmytgSZUqaqQ0g?view#Pre-Task-Bridging-Eth-and-Polygon)
So I've actually done this task before, to prvent double work [I'll add a link here.](https://hackmd.io/5R24NzVeSmytgSZUqaqQ0g?view#Task-1-Lending-Assets-on-AAVE)
It took only about 4 steps but do be careful at the bridging step!

# What is ENS
> The Ethereum Name Service (ENS) is a lookup system. It links information to a name. It is not a naming service just for Ethereum; it is a name service built on Ethereum. It offers a secure and decentralized way to address resources using human-readable names. It is a totally distributed domain name provider that allows anyone to buy and manage domains meaning you could send ETH or ERC20 tokens to “realsatoshi.eth” instead of to “8e866f012fb8fb…” (Decrypt)

Long story short, in the internet world we have the [Domain Name Service (DNS) ](https://www.cloudflare.com/en-gb/learning/dns/dns-records/) where we buy domains so that people can find our websites. In web3 we can do this in a decentralised way and rely on Ethereum as a way to put addresses.

This is important because of censorship resistance.

## Task 3: Register an ENS name
1. Go to [ENS](https://app.ens.domains/)
2. Pick a name you want!
3. Request to register then wait a minute. This cost me 0.002486ETH, $7.96USD
4. Once you've waited, just complete the registration and.. you're done! This cost me 0.015832ETH, $50.76USD

So the strange thing is, the price estimated was $97.77USD but it only cose me $58.72USD. I'm not sure how they estimated this but I think it was because they doubled the gas fee estimate (lower our expectations)

# Roundup
So this quest involved using a few Dapps. It was interesting overall and the NFT was really cute! Even though there wasn't a token drop this round I thought it was a good excuse to just get myself and ENS domain.