Uniswap is a decentralized exchange protocol based on the Ethereum blockchain that enables users to trade ERC-20 tokens without having to rely on an order book or any intermediaries. It operates as an automated market maker (AMM) that uses a mathematical algorithm to determine the value of tokens relative to each other. This algorithm ensures that when a user trades a token, the price of the token automatically adjusts to maintain a constant ratio of the token’s total value to the total value of the pool of tokens it is paired with. Uniswap also offers liquidity providers the ability to earn fees by providing liquidity to token pairs. Uniswap was launched in November 2018 and has since grown to become one of the largest and most popular decentralized exchanges in the cryptocurrency market.
