UNISWAP

What is Uniswap Protocol? The Uniswap Protocol is an open-source protocol for providing liquidity and trading ERC20 tokens on Ethereum. It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for safe, accessible, and efficient exchange activity.

Governed by the community. The Uniswap Protocol is managed by a global community of UNI token holders and delegates.

How do I use the Uniswap Protocol? o create a new liquidity pool, provide liquidity, swap tokens, or vote on governance proposals, head over to the Uniswap Interface and connect a Web3 wallet. Remember, each transaction on Ethereum costs Ether (ETH).

How does Uniswap Protocol work? 1. Uniswap is an automated market maker. In practical terms, it is a collection of smart contracts that define a standard way to create liquidity pools, provide liquidity, and swap assets.

2. Each liquidity pool contains two assets. The pools keep track of aggregate liquidity reserves and the pre-defined pricing strategies set by liquidity providers. Reserves and prices are updated automatically every time someone trades. 

3. Because reserves are automatically rebalanced after each trade, a Uniswap pool can always be used to buy or sell a token unlike traditional exchanges, traders do not need to match with individual counterparties to complete a trade.

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