What is UniSwap?

Uniswap is a software running on Ethereum that seeks to incentivize a global network of users to maintain an exchange where cryptocurrencies can be bought and sold by traders.

One of an emerging number of decentralized finance (DeFi) protocols, Uniswap leverages multiple crypto assets, including its native UNI cryptocurrency, to provide a service similar to a traditional exchange. The difference is Uniswap has no one central operator or administrator.

Rather than maintaining a central order book where buyers and sellers can place orders, Uniswap instead uses a collection of liquidity pools.