Uniswap is an open-source decentralized exchange (DEX) platform built on top of the Ethereum network and allows buyers and sellers to exchange ERC-20 tokens without having to use other intermediaries. This protocol was launched in 2018 by Hayden Adams. However, the underlying technology and its implementation was first described by the co-founder of Ethereum, namely Vitalik Buterin.

Uniswap is like an automated liquidity protocol where there is no order book or centralized party required to execute trades.

Then, how does trading occur if there is no order book?

Well, basically, It provides a liquidity solution so that anyone can lend their ERC-20 tokens to a special reserve called a liquidity pool. So, Uniswap does not need an order book to make a sale and purchase.

In return for the Liquidity Provider providing tokens to this liquidity pool, the Liquidity Provider will receive a percentage of trading fees from swap transactions made by Uniswap users.

Apart from having a decentralized nature that makes it easy to access the crypto market, Uniswap’s advantage is that it allows everyone to access it without having to register or log in to the market. Users only need to connect their personal wallet to directly carry out crypto trading activities.

Other advantages of Uniswap also include aspects such as new tokens that can directly access liquidity by adding their tokens to the exchange with the Uniswap V2 Router Contract. In addition, another advantage is that these liquidity providers can earn profits by simply putting their funds into the liquidity pool.

The Uniswap protocol has its own token called UNI. UNI entitles its holder to governance rights. This right allows UNI holders to vote or vote on protocol changes at Uniswap.

As of this video, there are approximately 246 million UNI tokens in circulation in the world. The number of UNI tokens targeted for circulation reaches up to 1 billion tokens. For this reason, Indodax is here as a place for traders who want to have UNI quickly and easily.