• Uniswap is a semi-decentralized cryptocurrency exchange that utilizes a set of smart contracts (liquidity pools) to execute trades on its platform.
  • It leverages smart contracts to facilitate automated transactions between cryptocurrency tokens on the Ethereum blockchain.
  • Founded in November 2018 by Hayden Adams, a former mechanical engineer at Siemens, Uniswap has received investments from business angel Ric Burton and venture capital firms, including Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures LLC and ParaFi.
  • With an average daily trading volume of US$220 million in October 2020, Uniswap has become a popular choice for traders and investors due to its usage in decentralized finance (DeFi).
  • Uniswap is a decentralized finance protocol that is used to exchange cryptocurrencies and tokens on blockchain networks that run open-source software, as opposed to centralized exchanges.
  • Changes to the protocol are voted on by the owners of a native cryptocurrency and governance token called UNI, and then implemented by a team of developers.
  • The protocol utilizes liquidity pools to fulfill orders instead of relying on a market maker, with the aim of creating more efficient markets.
  • Liquidity providers are rewarded with a percentage of the trading fees earned for that trading pair, and no fees are required to list tokens, allowing a large amount of Ethereum tokens to be accessible without registration.
  • As open-source software, Uniswap’s code can also be forked to create new exchanges.