Uniswap is powered by smart contracts running on the Ethereum, Polygon, Optimism, Arbitrum, Celo, and BNB Chains, all of which are attempting to make dapps and networks work together.

Blockchain technology ensures that every transaction is completely secure, transparent, and immutable. Additionally, because Uniswap's code is open source, anyone can examine it and modify its events.

How does Uniswap function?

To comprehend how the Uniswap exchange protocol functions, we must investigate how liquidity is generated. A traditional centralized exchange will match your order with someone on the other side of the trade when you want to buy or sell an asset. It's possible that this transaction will take a few seconds, several days, or nothing at all.

On Uniswap, there is no order book. Instead, the protocol makes use of an automated market maker (AMM), which provides liquidity and acts as a counterparty for all trades. A smart contract called the Asset Market Maker (AMM) stores a pool of assets and allows users to trade them without a third party.

Having said that, it's critical to keep in mind that the Uniswap DEX is always changing. The convention had three variants with critical updates delivered preceding 2022.

Each has changed how the entire industry interacts with DeFi transactions and will continue to work as long as Ethereum is around. Find out more about each Uniswap version in the following paragraphs.

The first decentralized Ethereum exchange to go live in 2018 was Uniswap v1. For the first time, users were able to trade ETH and ERC20 tokens without having to use a third party.

Even though Uniswap v1 is no longer the most widely used version, it revolutionized the DeFi industry. It laid out the establishment for what might become Uniswap and exhibited the practicality of decentralized trades.

Uniswap v2, an overhaul of the original exchange, went live in 2020. It rolled out numerous improvements to the convention, such as adding support for various resources, streak credits, and stakes.

Liquidity pools are one of the most significant changes in v2. A liquidity pool is just a couple of tokens that a client has added to the Uniswap shrewd agreement, which makes it feasible for it to work, in spite of the way that this might seem like a confounded idea.

For example, in the event that you really want to exchange some ETH for some MKR, by then, someone necessities to have gotten a couple of ETH and some MKR into Uniswap to engage this. This is done so that a small transaction fee can be paid. These charges are then split between every one individuals who have added liquidity, bringing about an automated revenue for the people who give liquidity.

Liquidity providers were required to have ETH and another ERC20 token in Uniswap v1; However, liquidity providers can now provide liquidity without ETH by using two ERC20 tokens in v2. Even though this seems like a small change, it gives you a lot more freedom.

Streak advances on Uniswap v2 One of the new features is the ability to make streak advances using liquidity pools. Streak credits, which were made famous by the Aave convention and permit clients to rapidly reimburse them, let them gain admittance to high upsides of any ERC20 token in Uniswap for inexpensively. Despite the fact that this appears as though a little detail, it is critical to make the DeFi environment in general more practical.

Cost prophets in Uniswap v2 Last but not least, the improved cost prophets in v2 ensure that the costs of tokens in Uniswap are more precise and more difficult to control.

On the Uniswap blog, you can learn about extra minor improvements.

Uniswap v3, the most recent version of the protocol, was made available in 2021 and is currently the one that is used the most.

It adds the following new features on top of the foundation laid by v2:

On Uniswap v3, the presentation of concentrated liquidity, which empowers liquidity suppliers (LPs) to contribute along unambiguous cost ranges, is one of the fundamental highlights of this rendition. Customers can then place range orders, which also improved capital proficiency.

On Uniswap v3, LPs can now specify three distinct expense levels for their liquidity pool: 0.05%, 0.30%, and 1.00%. This is another significant change. Therefore, they can change edges as per expected pair unpredictability.

Non-Fungible Liquidity on v3 This version of the protocol was also the first to combine the worlds of decentralized funds (DeFi) and non-fungible tokens (NFT). To put it another way, an NFT is created for each position you hold in a liquidity pool.

Launched on Other Networks Uniswap v3 innovated by launching on Optimism, a layer-2 Ethereum solution, and the Polygon network. Already, the trade convention had just been founded on Ethereum. The Uniswap people group pursued these choices, which will help the convention enormously later on.

Uniswap v3 is as yet being chipped away at, and new highlights are continually being added. The most up-to-date information can be found at the Uniswap blog.

Uniswap NFT Marketplace Aggregator Uniswap announced in June 2022 that it would be purchasing the NFT Marketplace Aggregator Genie due to the popularity of NFTs. This was a vital move for the blockchain area.

Additionally, from the end of 2022, you will be able to trade Ethereum-based NFTs and cryptocurrencies with Uniswap.

Dealers can get additional postings at the best costs from major Web3 commercial centers utilizing the Uniswap NFT commercial center aggregator.

The UNI token is the name of the Uniswap protocol's native token. It was created fully intent on returning capacity to the local area and decentralizing convention administration. Even though the protocol went live in 2018, the UNI token wasn't available until September 2020 with Uniswap v2.

According to the DappRadar Token Explorer, the price of UNI reached its all-time high in May 2021, when it was $43.37, and its all-time low in September 2020, when it was $2.

UNI holders can participate in the management of the convention by casting a ballot or submitting their own proposition. Plus, holders of the UNI token get limits on trading charges. The discount you receive will be greater the more UNI you hold.

To earn a return, UNI tokens can also be staked in popular protocols like Compound.

How can I get a UNI token?

Getting your hands on some UNI tokens can be done in a few different ways. However, before that, you should create a computerized wallet like MetaMask to store your cryptocurrency. Check out the video below for more information.

Then, on any trusted decentralized or brought together trade, you can easily purchase UNI using fiat (real money) or digital money. You get real responsibility for resources if you keep your cryptographic money in your wallet rather than on a unified trade account. Not your keys, but your cryptography.

Additionally, you can acquire UNI through the DappRadar Token Trade or Uniswap.

Additional methods for acquiring UNI include Uniswap, Uniswap Exchange, Uniswap login, the official Uniswap website, and the Uniswap website. In this way, you'll get a piece of the trading charges as an award.

Airdrops, last but not least, are yet another method for acquiring UNI tokens. At DappRadar, verified cryptocurrency airdrops are frequently available for free.