Uniswap is a decentralized exchange protocol built on the Ethereum blockchain, which allows users to trade Ethereum-based tokens directly with one another. Launched in November 2018 by Hayden Adams, Uniswap operates on a model that eliminates the traditional order book used by centralized exchanges. Instead, it uses an automated market maker (AMM) system to facilitate trades.In a typical centralized exchange, buyers and sellers place orders at specific prices, and the exchange matches these orders to execute trades. Uniswap, however, uses liquidity pools rather than matching orders. These pools are created by users who deposit an equal value of two tokens into a smart contract, enabling the exchange to maintain liquidity for trades. This system democratizes market making, allowing anyone to contribute to the liquidity of a given pair of tokens and earn fees in return.