Uniswap

Uniswap is currently the largest decentralized exchange (DEX) by trading volume operating on the Ethereum blockchain, which allows anyone to swap ERC20 tokens.

dYdX does have a larger trading volume than Uniswap, but it uses an order book rather than liquidity pools.

UNI token is Uniswap’s governance token, that provides Uniswap users the chance to get involved in the project’s governance.

Uniswap was the pioneer in using the automated market maker model, where users supply Ethereum tokens to liquidity pools, and algorithms determine how to price assets.

The users that supply the tokens to the various pools earn rewards for doing so.

As of July 2022, Uniswap has Total Value Locked (TVL) of USD $6.05 billion and upwards of USD $2 billion in trading volume.

Related Terms

Token

A Token is a digital asset that operates on a parent blockchain or on another digital asset’s blockchain because it doesn’t have a blockchain of its own. The term “token” also tends to describe almost all other cryptocurrencies other than Bitcoin and Ethereum, the two largest cryptocurrencies in existence today. Tokens have multiple purposes and use cases.

XRP

XRP, launched in 2012, is the native currency that runs on the XRP Ledger (XRPL), a public, open-sourced, permissionless, and decentralized blockchain that anybody can contribute to or transact on. XRP is used on the XRPL, which is a payment settlement, asset exchange, and remittance network for global payments used by private financial businesses and […]

Ethereum (ETH)

Ethereum is a decentralized blockchain platform that makes digital money, global payments, and applications possible using open-source software and smart contract functionality. The big difference between the two is that Ethereum is programmable, meaning you can build and use decentralized apps on the network. That means the Ethereum blockchain can be programmed to do virtually anything.

Binance Coin (BNB)

The cryptocurrency created by Binance exchange, the world’s largest centralized cryptocurrency exchange (CEX) by trading volume.. BNB is a utility token that can be traded like any other cryptocurrency, but is also used to pay for goods and services, participate in token sales, buy virtual gifts, reduce trading fees, make loans and transfers and make credit card payments.

FTX

FTX is a centralized cryptocurrency exchange (CEX) headquartered in The Bahamas and founded by Sam Bankman-Fried and Gary Wang in 2019. On November 11th, 2022, FTX filed for Chapter 11 bankruptcy and appointed a new CEO, Jon Ray. Sam Bankman-Fried stepped down as CEO amid accusations of mishandling $10 billion in FTX customer funds by transferring them from the exchange to his hedge fund, Alameda Research, to help fund floundering operations.