Uniswap; a game changer
The biggest decentralized exchange (DEX) running on the Ethereum blockchain is called Uniswap. It enables users to exchange cryptocurrency directly between themselves from anywhere in the world. With a market worth of more over $18 billion as of April 2021, UNI, the governance token that let users to vote on significant protocol changes, is the fourth-largest cryptocurrency by market size on Coinbase.
Uniswap, which debuted in November 2018, was one of the first decentralized finance (or DeFi) applications to experience substantial momentum on Ethereum. Several other decentralized exchanges (such as Curve, SushiSwap, and Balancer) have started since then, but Uniswap is now the most well-known by a wide margin. Uniswap had processed more than $10 billion in weekly trade volume as of April 2021.
In contrast to order books, which match bids and asks on a centralized exchange like Coinbase, the Automated Market Maker model was invented by Uniswap. In this model, users supply Ethereum tokens to Uniswap "liquidity pools" and algorithms set market prices based on supply and demand.
Users can benefit from benefits while facilitating peer-to-peer trading by contributing tokens to Uniswap liquidity pools. Anyone, anywhere, can develop and list their own tokens using the ERC-20 standard for Ethereum, supply tokens to liquidity pools, and trade tokens. Uniswap currently offers hundreds of tokens, with some of the most well-liked trading pairs being stablecoins like USDC and Wrapped Bitcoin.
