Info of Uniswap
Uniswap is an automated market maker (AMM) protocol and decentralized exchange (DEX) built on the Ethereum Blockchain that allows users to swap any ERC-20 token.
Uniswap is also the name of the company that initially built the Uniswap protocol, which is an open-source project that falls into the category of decentralized finance (DeFi). The protocol enables automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. Uniswap was estimated to be the largest DEX and the fourth-largest cryptocurrency exchange overall by daily trading volume.
Uniswap operates as an automated market maker (AMM) and uses liquidity pools to fulfill orders, instead of relying on a traditional order book. Liquidity pools are smart contracts that hold reserves of two tokens that can be traded. Users can provide liquidity to the pools and earn a percentage of the trading fees. Users can also swap tokens via the pools according to a mathematical formula that determines the price based on the supply and demand of each token.
Uniswap has its own native cryptocurrency and governance token called UNI, which was launched in September 2020. UNI holders can vote on proposals to change the protocol, such as adding new features, adjusting fees, or upgrading the system. UNI also gives holders the right to claim a portion of the fees generated by the protocol. UNI has a fixed supply of one billion tokens, of which 60% are allocated to the community, 21.51% to the team and investors, and 18.49% to the advisors and future employees.