Uniswap (UNI)

About

Uniswap is a decentralized exchange protocol operating on the Ethereum blockchain, enabling users to trade Ethereum-based tokens without intermediaries. It uses an automated market maker model, where liquidity pools are created by users providing tokens, and smart contracts automatically set market prices based on supply and demand. This approach allows for instant trades at known prices, mitigating liquidity issues common in traditional exchanges. Uniswap supports any ERC-20 token, allowing for a wide range of digital assets to be exchanged. The native token, UNI, serves as a governance token, allowing holders to vote on platform developments and participate in decision-making processes. Introduced in September 2020, UNI was distributed through an airdrop to past users, promoting community involvement. Uniswap's decentralized nature ensures users maintain control over their funds, reducing counterparty risk. It is one of the largest decentralized finance (DeFi) platforms, pioneering liquidity pool mechanisms and contributing significantly to the DeFi ecosystem's growth.