Uniswap is a decentralized cryptocurrency exchange built on the Ethereum blockchain. It operates without a central authority, allowing users to trade digital assets directly from their own wallets through an automated system.
The platform uses a protocol of smart contracts to create liquidity pools for trading pairs. Users can swap tokens instantly, and anyone can contribute assets to these pools to earn a portion of trading fees, facilitating a permissionless market.
Most people buy Uniswap on a major exchange. Binance has the lowest fees and the widest selection — here's the quick version:
Uniswap is a decentralized finance (DeFi) protocol that runs on the Ethereum blockchain. It facilitates the automatic trading of decentralized finance tokens by providing liquidity.
It works using a set of smart contracts that create and manage liquidity pools for token pairs. Prices are determined by an automated market maker formula based on the ratio of the two tokens in a pool.
Liquidity pools are smart contracts holding reserves of two tokens, enabling trades between them. Users, called Liquidity Providers, deposit tokens into these pools and earn trading fees in return.