What is Uniswap?

Uniswap (UNI) is a decentralized, open-source protocol that facilitates automated liquidity provision and decentralized trading on the Ethereum blockchain. As one of the leading decentralized exchanges (DEXs), Uniswap enables users to swap ERC-20 tokens without the need for intermediaries.

Key features of Uniswap:

• Automated Market Maker (AMM) Model
  Uniswap operates using an Automated Market Maker (AMM) model, which replaces traditional order books with liquidity pools. This allows users to trade tokens directly from smart contracts, ensuring seamless and decentralized trading.
• UNI Token
  UNI is the native governance token of the Uniswap protocol. It allows holders to participate in governance decisions, including protocol upgrades and treasury management, promoting a decentralized decision-making process.
• Liquidity Pools and Yield Farming
  Users can provide liquidity to Uniswap pools by depositing token pairs. In return, they earn a portion of the trading fees, creating an incentive for liquidity providers to support the protocol.
• Permissionless and Non-Custodial
  Uniswap is fully permissionless, meaning anyone can list a token or provide liquidity without needing approval. Additionally, it is non-custodial, ensuring users retain full control over their assets at all times.
  
  
  

What is the difference between Uniswap and centralized exchanges (CEXs)?
Unlike centralized exchanges that rely on order books and intermediaries to match buyers and sellers, Uniswap uses liquidity pools and smart contracts for peer-to-peer trading. This removes the need for third parties, enhances security, and eliminates the risk of centralized control or censorship.