Ȗniswap | 𝑬xchange
Uniswap is a decentralized cryptocurrency exchange that allows users to trade various cryptocurrencies without the need for a centralized intermediary. It was launched in November 2018 and is based on the Ethereum blockchain.
Uniswap uses an automated market maker (AMM) system, which is a type of decentralized exchange that uses mathematical formulas to determine the price of assets. In Uniswap, users can trade cryptocurrencies by exchanging them for other cryptocurrencies in the network, using smart contracts to automate the trading process.
One of the unique features of Uniswap is that it allows users to add liquidity to the platform and earn trading fees in return. Liquidity providers deposit equal amounts of two cryptocurrencies into a liquidity pool, which is used by traders to make trades. When traders make trades, they pay a fee which is split among the liquidity providers. This incentivizes users to provide liquidity to the platform, which in turn ensures that there is always sufficient liquidity for traders.
Uniswap has gained popularity due to its decentralized nature, ease of use, and low fees. However, as with any cryptocurrency exchange, users should always exercise caution when using the platform and do their own research before investing in any cryptocurrency.