Uniswap - Page 3

Uniswap is a decentralized exchange (DEX) protocol built on the Ethereum blockchain that allows users to trade cryptocurrencies without the need for a traditional intermediary, such as a centralized exchange. It operates using an automated market maker (AMM) model, where users provide liquidity by contributing pairs of tokens to liquidity pools, and in return, they earn transaction fees from trades that occur within those pools. Uniswap relies on smart contracts to facilitate trades, enabling users to swap tokens directly from their wallets in a trustless manner. The protocol's design promotes simplicity and efficiency, allowing for the seamless exchange of various ERC-20 tokens while maintaining decentralization and user control over funds. Uniswap has become a foundational element of the decentralized finance (DeFi) ecosystem.
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