What is Uniswap

Uniswap is an open-source, decentralized cryptocurrency trading exchange. It was founded in 2018 and has since become one of the most popular decentralized exchanges. Uniswap is built on the Ethereum blockchain and works with ERC-20 tokens and Ethereum-based wallets. The exchange is a trust-free transaction platform that stresses decentralization, censorship resistance, and security. At its foundation, Uniswap is built on an automated liquidity mechanism and uses non-upgradable smart contracts. This protocol generates token pools comprised of Uniswap user funds to assist traders in executing transactions during times of low liquidity. Arbitrage trading, in which traders seek the best purchase and sell price for an asset, is common on the Uniswap platform. The decentralization of Uniswap also allows users to attempt front-running, frequently with the use of automated bots.

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