Uniswap is a decentralized on-chain protocol that allows users to swap ETH and ERC20 tokens, but with liquidity pools instead of order books i.e. markets are created automatically by the protocol, as opposed to buyers and sellers being matched. It also allows users to earn fees by supplying liquidity, like many other decentralized finance (defi) protocols.
Uniswap was launched in November 2018 by Hayden Adams with the goals of lowering the barriers for participation in finance and removing central points of failure in infrastructure. With its decentralized protocol, it hopes to broaden the financial possibilities for developers and users alike. The initial design and implementation of the protocol had impressed Vitalik Buterin, who suggested to Adams that he apply for an Ethereum Foundation grant, which was approved in July 2018.
At the most general level, Uniswap utilizes two kinds of smart contracts: factory and exchange contracts. The former manages an exchange registry while the latter is used for every ERC-20 token, which is unique for each.
While Uniswap does not use a native token, there is a liquidity token that represents liquidity pairs. Fees generated from traders, at the rate of 0.3%, are distributed to liquidity providers in the pool, commensurate with their contribution of liquidity.
Uniswap V2 was launched in May 2020, and brought with it several major features, including price oracles, flash swaps, and ERC20-ERC20 pairs. Uniswap V1 continues to function, and will do so as long as Ethereum exists.
Learn more about Uniswap (UNI) here, including news, price predictions, opinions and analyses created by users.
Official Site: https://uniswap.org/
Twitter Profile: https://twitter.com/UniswapProtocol/
What is Uniswap: https://www.publish0x.com/defi-box/what-is-uniswap-xvrzogv
Uniswap - Bringing Cryptocurrencies to Life: https://www.publish0x.com/cryptonic/bringing-cryptocurrencies-to-life-uniswap-xjvye