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What is UniSwap (UNI)

UniSwap is a Decentralized Exchange (DEX) platform that runs on Ethereum Blockchain. Users can exchange and trade tokens that run on ERC-20 networks such as Ethereum (ETH) directly with ETH as a transaction fee.

Founder

Uniswap Founder is Hayden Adams, mechanical engineer from Siemens, inspired by Ethereum co-founder, Vitalik Buterin, to create a platform for cryptocurrency exchanges.

Why Uniswap

Uniswap operates on Ethereum Blockchain and runs with 2 smart contracts which are Exchange contract, for token exchange on Uniswap, and Factory Contract, for increasing new token on platform. 

Uniswap also uses Automated Market Maker (AMM) for price matching, by the process of swapping between different tokens by smart contract, but the token must be those that run on ERC-20 or ETH only. 

UNI Utility

As the governance token of Uniswap, UNI was given away to platform users as the airdrop and the holder will be given the right to vote for the direction of platform development and operation.

Roadmap and future of Uniswap

Uniswap was upgraded to be Uniswap V2 in 2020 with new function include:

• Exchange ERC20 with other ERC20 tokens without ETH as transaction fee.
• Include Oracle system to manage price data on platform
• Flash Swap which is ERC20 token for loan

In 2022 there was an update of Uniswap to V3 with new function include:

• Concentrated liquidity: giving individual LPs granular control over what price ranges their capital is allocated to. Individual positions are aggregated together into a single pool, forming one combined curve for users to trade against

Multiple fee tiers: allowing LPs to be appropriately compensated for taking on varying degrees of risk and now V4 is in development as well.