Uniswap (UNI)
| Category | Details |
|---|---|
| Website | https://uniswap.org/ |
| @Uniswap | |
| https://www.reddit.com/r/Uniswap | |
| Contract Addresses | |
| ethereum | 0x1f9840a85d5af5bf1d1762f925bdaddc4201f984 |
| xdai | 0x4537e328bf7e4efa29d05caea260d7fe26af9d74 |
| near-protocol | 1f9840a85d5af5bf1d1762f925bdaddc4201f984.factory.bridge.near |
| optimistic-ethereum | 0x6fd9d7ad17242c41f7131d257212c54a0e816691 |
| huobi-token | 0x22c54ce8321a4015740ee1109d9cbc25815c46e6 |
| arbitrum-one | 0xfa7f8980b0f1e64a2062791cc3b0871572f1f7f0 |
| polygon-pos | 0xb33eaad8d922b1083446dc23f610c2567fb5180f |
| harmony-shard-0 | 0x90d81749da8867962c760414c1c25ec926e889b6 |
| avalanche | 0x8ebaf22b6f053dffeaf46f4dd9efa95d89ba8580 |
| energi | 0x665b3a802979ec24e076c80025bff33c18eb6007 |
| sora | 0x009be848df92a400da2f217256c88d1a9b1a0304f9b3e90991a67418e1d3b08c |
| binance-smart-chain | 0xbf5140a22578168fd562dccf235e5d43a02ce9b1 |
Uniswap is a decentralized exchange (DEX) protocol built on the Ethereum blockchain. It facilitates the automated trading of decentralized finance (DeFi) tokens through the use of smart contracts. Unlike traditional exchanges, Uniswap does not rely on an order book to match buyers and sellers. Instead, it employs an automated market-making (AMM) system that allows users to trade directly from their wallets.
History of Uniswap
Uniswap was created by Hayden Adams and launched in November 2018. The project was inspired by Ethereum co-founder Vitalik Buterin's idea for an on-chain automated market maker. Uniswap's development was funded through grants and contributions from the Ethereum Foundation, and it quickly gained popularity within the DeFi community due to its innovative approach to liquidity provision and trading.
Key milestones
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Uniswap V1: Launched in November 2018, the first version of Uniswap introduced the AMM model, which enabled users to trade ERC-20 tokens directly on the Ethereum blockchain without intermediaries.
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Uniswap V2: Released in May 2020, this version brought several improvements, including the ability to use ERC-20 pairs, rather than being limited to ETH pairs. It also introduced features like flash swaps and improved price oracles.
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Uniswap V3: Launched in May 2021, Uniswap V3 introduced concentrated liquidity, allowing liquidity providers to allocate capital within specific price ranges. This increased capital efficiency and provided better fee performance for liquidity providers.
How Uniswap works
Uniswap operates on a decentralized protocol that allows users to trade Ethereum-based tokens through the use of liquidity pools. These pools are created by users, known as liquidity providers, who deposit equal values of two tokens into a smart contract. In return, liquidity providers earn fees from trades that occur within the pool.
Automated market maker model
Uniswap's AMM model uses a constant product formula, also known as the x*y=k formula, to maintain the balance of tokens within a liquidity pool. This formula ensures that the product of the quantities of the two tokens in the pool remains constant, even as trades occur. As a result, the price of tokens adjusts automatically based on supply and demand.
Liquidity provision
Anyone can become a liquidity provider on Uniswap by depositing tokens into a liquidity pool. In return, liquidity providers receive liquidity tokens that represent their share of the pool. These liquidity tokens can be redeemed for the underlying assets at any time. Liquidity providers earn a portion of the trading fees generated by the pool, which incentivizes them to provide liquidity.
The role of UNI token
The UNI token is Uniswap's native governance token. It was introduced in September 2020 with the launch of the Uniswap governance system. UNI holders have the ability to propose and vote on changes to the protocol, including adjustments to fees, upgrades, and other important decisions.
Governance and voting
Uniswap's decentralized governance system allows UNI token holders to participate in decision-making processes. Proposals can be submitted by any UNI holder with at least 1% of the total UNI supply delegated to their address. Once a proposal is submitted, it undergoes a voting period where UNI holders can cast their votes. If a proposal receives a majority of votes and meets the quorum requirement, it is implemented.
Distribution and incentives
The UNI token was initially distributed to users who had interacted with the Uniswap protocol prior to September 1, 2020. This retroactive airdrop rewarded early adopters and liquidity providers with a share of the UNI token supply. Additionally, a portion of the tokens is reserved for the Uniswap treasury, which funds development and ecosystem growth initiatives.
Uniswap's impact on the DeFi ecosystem
Uniswap has played a significant role in the growth of the DeFi ecosystem by providing a decentralized and permissionless platform for token trading. Its AMM model and liquidity pool structure have laid the groundwork for many other DeFi protocols and projects.
Innovations and influence
Uniswap's innovative approach to decentralized trading has inspired numerous other DEXs and DeFi platforms. Its model has been adapted and expanded upon by projects such as SushiSwap, Balancer, and Curve Finance. The success of Uniswap has demonstrated the potential of decentralized finance to disrupt traditional financial systems.
Integration with other DeFi projects
Uniswap is widely integrated with various DeFi projects, allowing users to seamlessly trade tokens and provide liquidity across different platforms. It serves as a critical infrastructure component for decentralized applications (dApps) and protocols that require token swaps and liquidity provision.