Uniswap is a decentralized exchange (DEX) running on (based on) the Ethereum blockchain. Based on smart contracts, users can swap between different cryptocurrencies without any involvement from a centralized part.
The biggest difference compared to a centralized exchange is that Uniswap uses liquidity pools and AMM (Automated Market Maker) to set the exchange rate. In addition, there is never an exchange for fiat. All interaction with the decentralized exchange needs to take place with, for example, MetaMask or WalletConnect which are two very common wallets that you can install in your browser.
What is UNI?
UNI Token (UNI) is Uniswap’s governance token. This means that those who hold UNI can participate and vote for proposals on how to improve the protocol. The more UNI a person holds, the more votes the person is eligible for.
What’s the difference between Uniswap and Pancakeswap?
After Uniswap was launched, many similar decentralized exchanges have been created, such as PancakeSwap, QuickSwap and SushiSwap. What differs between them is primarily which blockchains they can interact with but also user friendliness and additional functions apart from swapping of cryptocurrencies. As of 2022, Uniswap interacts with Ethereum, Polygon, Optimism, Arbitrum and Celo. As Uniswap is built on Ethereum, it focuses on that ecosystem.
What determines the price of UNI?
The price of UNI is determined solely by the supply and demand of the cryptocurrency. UNI was launched through an airdrop in September 2020. Everyone who had completed a transaction with Uniswap before 1 September 2020, automatically got 400 UNI to their Ethereum wallet address.
This meant that 60% of the total supply of 1 000 000 000 UNI, was issued via airdrop. The remaining 40% is distributed through a four-year period from launch, to those who add liquidity to specific liquidity pools on Uniswap. After that, UNI will have annual inflation (increased number of coins) of 2%.
Uniswap V2 white paper: https://uniswap.org/whitepaper.pdf (mars 2020)
Uniswap V3 white paper: https://uniswap.org/whitepaper-v3.pdf (mars 2021)
Uniswap hemsida: https://uniswap.org/
Uniswap DEX https://app.uniswap.org/