Uniswap
Largest Ethereum DEX — AMM model, UNI governance token, v3 with concentrated liquidity.
Uniswap is a decentralized exchange (DEX) on Ethereum that popularized the AMM (Automated Market Maker) model — without an order book, price is determined by a mathematical formula.
AMM formula (v2): x × y = k
•x = token A reserve, y = token B reserve, k = constant
•Price changes automatically with every trade
Uniswap versions:
•v1 (2018) — pioneer, ETH/token pairs
•v2 (2020) — direct token/token pairs, flash swaps
•v3 (2021) — concentrated liquidity (LP chooses price range), 4000x capital efficiency
•v4 (2024) — hooks (custom logic for pools)
UNI token: governance, voting on fee revenue and new parameters.
Volume: Uniswap generates $1–5 billion daily volume, often surpassing centralized exchanges.
LP equation for v3: You choose price range (e.g. $2,000–$4,000 for ETH) — earn fees only while price is in that range.