Uniswap is the protocol that proved DEXs could compete with centralized exchanges on volume. From its launch in 2019 to today, Uniswap has expanded to v4, processed trillions in trading volume, and spawned dozens of forks. It is the essential DeFi infrastructure.
Uniswap Versions: v2, v3, and v4
Uniswap Versions: v2, v3, and v4
Uniswap v2: The Foundation
v2 (2020) established the xy=k AMM model and became the dominant DEX. Simple: deposit equal value of two tokens, earn 0.30% trading fees proportionally. The model is capital-inefficient — most liquidity sits unused at extreme price ranges.
Uniswap v3: Concentrated Liquidity
v3 (2021) allowed LPs to concentrate their liquidity in custom price ranges, achieving up to 4000x capital efficiency improvement. An LP providing ETH/USDC liquidity between $1,500–$2,500 earns far more fees per dollar than spreading liquidity across all prices.
Uniswap v4: Hooks and Customization
v4 (2024) introduced 'hooks' — smart contract plugins that attach custom logic before/after swaps, modifications to fees, or entirely novel AMM curves. This makes Uniswap v4 a DeFi platform-of-platforms rather than a fixed protocol.
UNI Token and Governance
UNI Token and Governance
- ✓UNI: Uniswap governance token, 1 billion total supply
- ✓Fee switch: governance could direct trading fees to UNI holders
- ✓Grants: Uniswap Foundation funds DeFi ecosystem development
- ✓UniswapX: new intent-based swap routing for best execution across venues
- ✓Uniswap Labs mobile wallet available for direct retail access
Uniswap FAQs
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