Exchanges / Multichain / UNI

Uniswap

A decentralized exchange protocol and interface for swapping tokens through onchain liquidity pools.

THE OVERVIEW

What Uniswap does

Uniswap is an exchange protocol built around onchain liquidity pools. Traders exchange assets against pool reserves, while liquidity providers supply the assets available for trading. Prices adjust with pool state, so a trade that is large relative to available liquidity has greater price impact. [1]

Its versions differ in how liquidity is managed. Version three introduced positions within chosen price ranges. Version four retains concentrated liquidity and adds hooks: optional contracts that customize actions around a pool, including swaps and liquidity changes. [2]

IN PRACTICE

What people use it for

01

Swap tokens

Exchange one asset for another against a liquidity pool. [1]

02

Supply liquidity

Provide assets to a pool; position structure and fees depend on its protocol version. [1]

03

Customize a pool

Build v4 hooks for features such as dynamic fees and custom pricing logic. [2]

UNDERSTAND THE TECHNOLOGY

Key concepts

Automated market maker

A pool and its pricing rules replace matching a trade against a posted order. [1]

Concentrated liquidity

Liquidity providers in v3 and v4 select the price range in which their liquidity is active. [1]

Hooks

Optional v4 contracts run around pool actions. Their behavior is specific to each pool. [2]

MARKET CONTEXT

UNI market

$9.18+0.94% 24hPrice history, market data and signal →

Updated 1m ago · CoinGecko

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Uniswap news & coverage

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Official resources & sources

Dextape explanations based on the primary documentation below.