What is Uniswap (UNI)?

Uniswap is a decentralized exchange (DEX) that uses liquidity pools (LPs) to make markets without the need for order books or central facilitators. Uniswap is underpinned by smart contracts that facilitate token swaps and provide the incentive structure for liquidity providers to participate in the system. As one of the first automated market makers (AMMs) to go live on the Ethereum network, Uniswap has made significant strides in proving that AMMs can be an effective tool for trading digital assets in a decentralized and permissionless way.