Uniswap is a Decentralized Exchange (DEX) built on the Ethereum Blockchain. Created in 2018, it is used for trading ERC-20 tokens. Whereas most exchanges are centralized, Uniswap is fully decentralized, meaning it is not governed by any single entity, and there are no intermediaries. Uniswap functions without an order book and differs from other DEXes in that it uses something called a Constant Product Market Maker (CPMM) which is a variation of an Automated Market Maker (AMM).
- AMM procedures are permissionless
- Completely open source
- Whether you need to be a merchant or an LP on Uniswap, the only thing you need to maintain is an upheld Ethereum wallet
- The procedure to link a wallet to Uniswap is very simple
- Hugely valuable to startup Blockchain ventures that need to quickly deliver their tokens to the market
- There is no need to pay for token or coin listing tax