Blockchain 101: UNISWAP

Popular Decentralized Exchange on Ethereum


In September 2020, Uniswap started to release its UNI token (ERC20) via an airdrop program to its former users (no direct sale).

Uniswap DEX logo


The idea of a solution like Uniswap was first proposed by Vitalik Buterin in 2016 for a decentralized exchange (DEX) that could employ an on-chain automated market maker. About 1 year later, Hayden Adams started working on the concept and received several grants including from the Ethereum Foundation and some Venture Capitalists. Uniswap launched its v1 in November 2018 and an upgraded v2 in May 2020.

Uniswap Automated Market Maker profile (price A/B correlation to liquidity)

Pros and Cons

One inconvenient of Uniswap AMM system is that there is an important slippage for large orders as the price paid increases sharply with the demanded amount. This slippage is amplified when the liquidity in the pool is low and the demand high.

Creating a liquidity pool for a pair of cryptocurrency is open to anyone


The full token distribution and release schedule is available: here

UNI token 4 years release schedule

Storage and wallets

Technical specificities:


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