What is Uniswap?

Uniswap is a decentralized protocol for automated liquidity provision on Ethereum. It is the first protocol of its kind and enables decentralized exchanges on Ethereum to swaplessly connect to liquidity pools composed of multiple tokens. This gives users access to an easy-to-use decentralized exchange with a wide variety of assets. Uniswap does not use an order book, but instead relies on liquidity pools to provide liquidity. These pools are composed of two tokens, one being the “base” token and the other the “quote” token. The ratio between the two tokens in the pool determines the price. When a user wants to trade, they simply specify how much of the base token they want to sell, and Uniswap will automatically calculate and execute the trade at the current market price. This system is trustless and secure, as it does not rely on a centralized exchange or order book. Uniswap is also permissionless, meaning anyone can create a liquidity pool and earn fees from trades.

Uniswap was created by Hayden Adams and is now managed by a team of developers from various backgrounds. The protocol is open source and anyone can contribute to its development. Uniswap has been live on Ethereum mainnet since November 2018 and has seen widespread use, with over $1 billion worth of ETH traded on the protocol.

The Uniswap protocol is powered by Ethereum smart contracts and uses the native ERC20 token standard. This means that any token that is compliant with the ERC20 standard can be traded on Uniswap. There are currently over 200 tokens traded on Uniswap, with more being added all the time. The protocol is also easily extendable, so that new features can be added in the future.

Uniswap is a decentralized protocol that provides liquidity to decentralized exchanges on Ethereum. It uses liquidity pools instead of an order book, and is trustless and secure. The protocol is powered by smart contracts and is easily extendable.