What Is Uniswap?
Uniswap is a leading decentralized finance (DeFi) protocol and one of the largest decentralized exchanges (DEX) by transaction volume. Built on Ethereum, it enables peer-to-peer token swaps without intermediaries through automated liquidity pools.
Key Features:
- Decentralized Trading: Swap ERC-20 tokens instantly using liquidity pools.
- Permissionless Listings: No fees for token listings; only a liquidity pool is required.
- Liquidity Mining: Providers earn fees and UNI tokens for contributing to pools.
- Governance: UNI token holders vote on protocol upgrades and fund initiatives.
UNI Token
Launched in 2020, UNI is Uniswap’s governance token. Holders can:
- Vote on platform changes.
- Fund liquidity pools, grants, and partnerships.
- Trade or invest in UNI on exchanges.
👉 Learn how to stake UNI for rewards
Founders of Uniswap
Uniswap was created in 2018 by Hayden Adams, inspired by Vitalik Buterin’s 2016 proposal for an automated market maker (AMM). Adams, a mechanical engineer turned developer, leveraged Ethereum’s smart contracts to build the protocol.
Key Milestones:
- 2018: Uniswap V1 launch.
- 2020: Uniswap V2 introduces ERC-20/ERC-20 pools.
- UNI Airdrop: 400 UNI tokens distributed to early users.
Uses of UNI Token
Uniswap solves liquidity issues in DEXs using:
Automated Market Maker (AMM)
- Formula:
x * y = k(constant product) adjusts token prices based on pool ratios. - Liquidity Pools: Users deposit tokens to earn fees proportional to their share.
Governance & Utility
- Decentralized Oversight: UNI holders govern protocol upgrades.
- Community Funding: 60% of UNI supply allocated to users; 40% to team/advisors.
Where to Buy UNI
Supply: 519.8M UNI circulating (1B max).
Top Exchanges:
- Binance
- Uniswap V2
- SushiSwap
- HitBTC
FAQ
How do I provide liquidity on Uniswap?
Deposit equal values of two tokens into a pool to earn trading fees and UNI rewards.
Is UNI a good investment?
UNI’s value depends on Uniswap’s adoption and DeFi growth. Research market trends before investing.
What’s the difference between Uniswap V1 and V2?
V2 supports direct ERC-20/ERC-20 swaps and flash swaps, improving efficiency.
Final Notes
Uniswap revolutionizes DeFi with decentralized trading and community governance. For the latest UNI prices and trends, monitor trusted crypto trackers.