The decentralized exchange: Uniswap is designed to be open source software and is similar to many of the computer programs running on Ethereum. Specifically, Uniswap is an automated and decentralized liquidity protocol. Uniswap takes on the role of a decentralized exchange and unlike the traditional exchange that works with an order book connecting buyers and sellers, the platform uses a mathematical equation and pools of liquidity to perform the same transactions. This allows to exchange (make "swaps") ethers tokens against other tokens respecting the ERC-20 standards based on Ethereum smart contracts.
The main objective is to provide maximum liquidity to its users. However, these funds are fed by the community via the ETH/ERC 20 token pairs and each of these pairs have an equivalent basis of 1 to 1.
Example: With the pair ETH/USDT and if ETH = $500
The user will have to provide: 1 ETH and $500 or 10 ETH and $5000
The platform takes 0.3% fees and distributes the returns proportionally among the providers. The platform has its own native token: UNI. It allows holders to participate (via votes) to have an important decision-making power on the future of the platform....