What is Uniswap?

Uniswap (UNI) is a decentralized exchange (DEX) protocol built on the Ethereum blockchain. It allows users to swap ERC-20 tokens without the need for an intermediary, such as a centralized exchange.

One of the key features of Uniswap is its use of an automated market maker (AMM) mechanism, which allows users to provide liquidity to the platform by depositing tokens into a pool. These liquidity pools are used to facilitate trades between different tokens, and users who provide liquidity earn fees in return.

The Uniswap protocol also uses a unique pricing mechanism based on the ratio of tokens in a liquidity pool, which allows traders to execute trades at a fair market price, without the need for order books or order matching.

The native cryptocurrency of the Uniswap protocol is UNI, which is used for governance and decision-making on the platform. UNI holders can vote on proposals related to the development and management of the Uniswap protocol, such as changes to the fee structure or the addition of new tokens to the platform.

Since its launch in 2018, Uniswap has become one of the most popular and active decentralized exchanges in the cryptocurrency space, with billions of dollars in daily trading volume. Its focus on decentralization, transparency, and community governance has made it a popular choice for users who value these principles.

Overall, Uniswap represents a promising innovation in the cryptocurrency space, offering a decentralized and transparent alternative to traditional centralized exchanges. Its use of an automated market maker mechanism and unique pricing system make it a popular choice for users who value efficiency, accessibility, and fairness in the exchange of digital assets.

The article does not constitute financial advice.

Start with crypto today

Sign up on NBX, a trusted Norwegian cryptocurrency exchange and custodian, and kickstart your crypto journey safely.
Crypto 101
Explore the most popular crypto terms and find answers to your questions.

How are cryptocurrency and NFTs taxed in Norway?

Read

How to mine Ethereum?

Read

What is Digital Scarcity?

Read

What is an altcoin?

Read

What are stablecoins?

Read

What is a Private Key?

Read

What is staking?

Read

What is a derivative?

Read

What is Avalanche?

Read
Blog

Insights, Trends, Analysis

Unraveling the cryptocurrency industry revolution.
#crypto101

AI tokens surge as NVIDIA announces record quarterly earnings

AI-related tokens surged shortly after NVIDIA posted their earnings for the fourth quarter. Learn more here.
2 minutes
2024-02-22
#crypto101

What happened with Ethereum - week 1 in review: Ethereum (ETH)

Many decided to buy Ethereum during the first week of the year. Learn why here.
2 minutes
2024-01-11
#crypto101

Why Ethereum rallied - week 48 in review: Ethereum (ETH)

The week in review: Ethereum (ETH) week 48 - 27th of November to 3rd of December - NBX Report.
2 minutes
2023-12-07
Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.