Uniswap

Uniswap: the largest decentralized exchange protocol on Ethereum

Uniswap is a decentralized exchange (DEX) protocol that lets anyone swap tokens directly from their own wallet, using liquidity pools instead of an order book. It launched on Ethereum in 2018 and now runs on many networks, including its own layer 2, Unichain. The Uniswap Labs web app at app.uniswap.org is the most common way to use it.

What it is

Uniswap is an automated market maker (AMM). Liquidity providers deposit pairs of tokens into pools, and traders swap against those pools at a price set by a formula. Providers earn a share of trading fees. Swaps are executed by smart contracts, so you keep custody of your tokens until the moment of the trade.

The protocol is governed by holders of the UNI token, who vote on proposals such as fee settings and treasury use.

Protocol versions

• v1 (November 2018): ETH to token pools only.
• v2 (May 2020): any ERC-20 to ERC-20 pair, price oracles, and flash swaps.
• v3 (May 2021): concentrated liquidity, letting providers choose a price range for more capital efficiency, and multiple fee tiers.
• v4 (January 31, 2025): a single "singleton" contract for all pools to cut gas costs, plus hooks: plugins that let developers customize pool behavior, such as dynamic fees or limit orders. Over 150 hooks existed at launch.

Key features

• Swaps: trade thousands of tokens with routing across v2, v3, and v4 pools.
• Liquidity provision: create or join pools and earn fees, with the risk of impermanent loss.
• Many networks: Ethereum, Unichain, Arbitrum, Base, Optimism, Polygon, BNB Chain, Avalanche, Celo, Linea, and others, with Solana swaps in the web app.
• Unichain: an Ethereum layer 2 built for DeFi, live on mainnet since February 2025.
• Uniswap Wallet: a self-custody mobile and browser wallet from Uniswap Labs.
• Newer products: Uniswap Labs added features in 2026 such as token auctions in the web app and an Earn product powered by Morpho. Availability can vary by region.

Fees and governance

In December 2025, UNI holders approved the "UNIfication" proposal with overwhelming support. It switched on protocol fees for a set of pools, using that revenue to buy and burn UNI, and burned 100 million UNI from the treasury. Around the same time, Uniswap Labs set its interface fee to zero. Liquidity provider fees still apply to every swap, and you also pay network gas.

Regulation

The US Securities and Exchange Commission sent Uniswap Labs a Wells notice in April 2024, then closed its investigation without enforcement action in February 2025. Rules for DeFi still differ by country, and the web app restricts some tokens in some regions.

Security

• Self-custody: you trade from your own wallet, and Uniswap never holds your funds.
• Token risk: anyone can create a pool for any token, including scams and copycat tokens. Check the contract address, and treat unverified tokens with caution.
• Approvals: trading ERC-20 tokens requires approvals. Revoke approvals you no longer need.
• Slippage and MEV: large or illiquid trades can move the price. Set a sensible slippage limit.
• Phishing: use the real app.uniswap.org address. Fake Uniswap sites and "airdrop" offers are common.

How to get started

• Install a wallet such as MetaMask or the Uniswap Wallet and fund it with the native token for fees.
• Open app.uniswap.org, connect your wallet, and pick a network.
• Choose the tokens, enter the amount, and review the quote, price impact, and gas.
• Approve the token if asked, then confirm the swap in your wallet.

Uniswap does not run on Vaulta. To move value between Vaulta and Ethereum, users typically go through a centralized exchange or an instant swap service.

Pros and cons

Pros

• Deep liquidity for most Ethereum and EVM tokens.
• Self-custodial and permissionless.
• Open-source contracts with a long track record.
• No interface fee on the Uniswap Labs app.

Cons

• Gas costs on Ethereum mainnet can be high.
• Anyone can list tokens, so scam tokens appear.
• Liquidity providers face impermanent loss.
• No support for Vaulta or other non-EVM chains besides Solana swaps.

FAQ

Is Uniswap v4 live?

Yes. It launched on January 31, 2025.

What is Unichain?

An Ethereum layer 2 network from Uniswap Labs, live on mainnet since February 2025.

Does Uniswap charge a fee?

Each pool charges a liquidity provider fee, and some pools now also send a protocol fee to the UNI burn. The Uniswap Labs interface fee is currently zero.

Sources: Uniswap v4 announcement, UNIfication proposal, SEC investigation closed.

This listing is informational and is not financial advice. Please exercise caution. BlockzHub does not assume responsibility for any problems, damages, or losses that may result from using the services described here.