Uniswap (UNI) - Ethereum’s Most Popular Exchange
Uniswap (UNI), created in October 2018, is a decentralized, open-source, Ethereum-based cryptocurrency exchange (DEX) or smart contract protocol which allows anyone to swap ERC-20 tokens. This protocol allows users anywhere in the world to trade crypto without intermediaries.
This platform is powered by two smart contracts: exchange and Factory, which are programmed to conduct specific tasks when certain criteria are satisfied. For example, factory smart contracts are used in the case to add new tokens for the platform, while exchange contracts will handle all token swaps or "trades."
It uses smart contracts with Automated Market Maker (AMM) instead of relying on intermediaries to match and buy and sell traders' prices. By establishing liquidity pools for numerous asset pairs, it does this.