Uniswap

Technology & Use Case

Uniswap is built on Ethereum as an automated market maker (AMM). Instead of using order books like traditional exchanges, it relies on liquidity pools — shared pots of tokens provided by users. For example, someone might deposit equal values of ETH and USDC into a pool. Traders can then swap between the two directly from this pool. Prices adjust automatically based on supply and demand: if one side of the pool gets bought heavily, the price shifts to reflect the new balance. Liquidity pools are essential because they allow trades to happen instantly, without needing a buyer and seller to meet at the same time. Think of a liquidity pool like a vending machine stocked with tokens — you can trade instantly because the tokens are always there. UNI, the platform’s token, is used for governance and incentives, while liquidity providers earn fees for supplying tokens to the pools.

Origins & Team

Uniswap was founded in 2018 by Hayden Adams, a former mechanical engineer who built the protocol inspired by Ethereum co-founder Vitalik Buterin’s writings. After years of growth, the UNI token was launched in 2020 as a governance tool and to reward early adopters, marking a major moment in the rise of decentralized finance (DeFi).

Ecosystem & Partnerships

Uniswap has grown into one of the largest DEXs, processing billions in trading volume. Its ecosystem includes multiple versions (V1–V3) with upgrades like concentrated liquidity. UNI governance controls the protocol treasury and can guide future developments. Partnerships with wallets, DeFi apps, and Layer-2 networks (like Optimism and Arbitrum) make Uniswap a core piece of Web3 infrastructure.