Uniswap (UNI) is a decentralized financial protocol that is used to exchange cryptocurrencies. It is provided on open-source decentralized blockchain networks, unlike any centralized intermediary. The protocol facilitates automatic transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. Uniswap is also the name of the company that originally developed the Uniswap protocol. UNI was created on November 2, 2018, by Hayden Adams, a former mechanical engineer at Siemens.
The Uniswap protocol uses the Automated Market Making (AMM) mechanism, which contains pools of liquidity for traders. This means that users can combine ERC-20 tokens directly with any other ERC-20 tokens. Stacking of paired tokens brings profit from UNI, and the company often raffles its own tokens for participation in the life of the platform.