Uniswap is a decentralized cryptocurrency exchange (also known as a decentralized exchange - DEX) that facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. As of October 2020, Uniswap is estimated to be the largest decentralized exchange and the fourth largest cryptocurrency exchanger overall by daily trading volume. As of March 2021, Uniswap was generating fees of approximately US$2-3 millions daily to liquidity providers who facilitate liquid markets for crypto assets to be traded. Taken from: https://es.wikipedia.org/wiki/Uniswap

Created on November 2, 2018 by Hayden Adams, a former Siemens mechanical engineer, Uniswap is a decentralized exchange using Liquidity Pools (LPs) for making markets, rather than the typical Order Book. The platform uses Liquidity Pools, which users can stake to ensure liquidity.

Uniswap uses liquidity pools instead of acting as a market maker, which is also a departure from centralized exchanges, in order to build a more efficient marketplace. In exchange for creating markets and providing liquidity for traders to conduct transactions, liquidity providers on Uniswap are compensated in liquidity tokens, which generally represent their portion of the overall liquidity pool.

In return for their ETH and DAI, the liquidity provider is awarded with liquidity provider tokens, or LP tokens, that are swapped for ETH and DAI upon withdrawal of tokens from an ETH/DAI liquidity pool. Because the supply amounts are 10 percent of the total liquidity, the contract issues and sends market makers liquidity tokens that give them a right to 10% of the available liquidity of the pool. Swap works using Automated Market Makers (AMMs) in which Liquidity Providers (LPs) contribute tokens into a smart contract, which then provides price quotes to traders, without depending on any professional market makers.

For instance, if you wanted to run a swap for an altcoin called Durian Token, you would run a new Uniswap smart contract for Durian Token and build out a pool of liquidity that has -- say -- $10 of Durian Token and $10 of Ethereum-based one. Anyone that wants can use Uniswap to exchange digital assets, provide liquidity, or set up a new marketplace for trading the new digital asset pair. The Uniswap platform uses smart contracts built on top of a blockchain to facilitate the decentralized exchange of a variety of different digital assets.

Uniswap is also fully open-source, meaning that anyone can copy the code to build their own decentralized exchange. The Uniswap platform can support trading any digital tokens which conforms to Ethereums technical standard known as ERC-20. Uniswap is a decentralized exchange (DEX) that allows users to easily trade one ERC-20 token for another ERC-20 token, without requiring the use of a centralized middleman.

Uniswap is a decentralized financial protocol used for exchanging crypto currencies and tokens; Uniswap is provided over a blockchain network, which is decentralized, running on open-source software, in contrast to any kind of centralized intermediary. The Uniswap projects decentralization and open-source management via its UNI token makes it highly popular with blockchain advocates that are opposed to large, centralized crypto-exchanges. You can also buy UNI via Uniswap platform using another cryptocurrency, like Ethereum.

UNI was introduced on 16th September 2020, via retrospective airdrops for users that interacted with Uniswap, by trading tokens or providing liquidity. Some users received multiple tokens depending on how much liquidity they provided to its protocol. The allowed, combined with a 0.3% trading fee distributed to liquidity providers -- and the popularity of Uniswap as the launching pad for popular DeFi project tokens -- saw Uniswap climb in the ranks, becoming one of the top DeFi platforms in terms of Total Value Locks (TVLs) -- a measure of the total value of cryptocurrency assets locked on a platform.

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Author's Note: The opinion expressed here is not investment advice, it is provided for informational purposes only and reflects the opinion of the author only. I do not promote, endorse or recommend any particular investment. Investments may not be right for everyone. Every investment in the market and every trade you make involves risk, so you should always do your own research before making any decisions. I do not recommend investing money that you cannot afford to preside over as you could lose the entire amount invested.This is an informational article, I do not promote, endorse or recommend any particular investment, investments may not be suitable for everyone as the entire amount invested could be lost.