What is Uniswap?

Uniswap is a cryptocurrency and decentralized exchange for trading digital assets. It is a decentralized exchange built on the Ethereum blockchain, allowing users to trade and swap ether and ERC-20 tokens directly from their wallets. Uniswap is also an open source project and falls into the category of a DeFi product.

Uniswap aims to solve the liquidity problem in decentralized exchanges by allowing the exchange to swap tokens without relying on buyers and sellers creating that liquidity. The project facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. Uniswap also enables users to earn rewards and participate in governance.

Uniswap's technology is built on the Ethereum blockchain, which is a decentralized blockchain with smart contract functionality. Uniswap uses smart contracts to facilitate trades instead of a centralized exchange. The protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.

Uniswap differentiates itself from competitors by using an automated market maker (AMM) system and liquidity pools. This allows Uniswap to create liquidity pools of token pairs through a system of smart contracts, making it the largest cryptocurrency exchange in terms of available tokens.