Uniswap is an automated liquidity protocol built on the Ethereum blockchain that enables users to trade ERC-20 tokens without intermediaries. It employs an automated market maker (AMM) mechanism to set prices, with smart contracts deployed on Ethereum executing trades. Launched in 2018 by Hayden Adams, Uniswap has released several versions, with V3 offering improvements in efficiency and performance. Unlike traditional centralized exchanges that require users to deposit funds and maintain an order book, Uniswap operates permissionlessly through liquidity pools managed by smart contracts. Traders swap tokens against these pools, which are funded by liquidity providers earning fees for their contributions. The platform uses the constant product formula x*y=k to determine prices, automaticall...
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