$UNI is the native cryptocurrency of Uniswap, a decentralized exchange built on the Ethereum blockchain. Uniswap enables users to trade various ERC-20 tokens directly from their wallets without relying on a centralized intermediary. It uses an automated market maker protocol instead of a traditional order book to facilitate trading, which helps ensure liquidity and efficient price discovery.
Key features of Uniswap:
Automated Market Maker Uniswap uses liquidity pools rather than an order book to determine asset prices. These pools are made up of pairs of tokens, and users can trade tokens directly from these pools.
Decentralized: Uniswap operates without a central authority. This means users retain control over their funds, which are never held by a third party.
Liquidity Pools: Anyone can provide liquidity by depositing equal values of two tokens into a pool. In return, liquidity providers earn fees from trades that occur within that pool.
$UNI Token: The token is the governance token of the Uniswap protocol. Holders of can participate in governance decisions, such as protocol upgrades and changes to fee structures.
Uniswap V3: The latest version of Uniswap (V3) introduced features like concentrated liquidity, where liquidity providers can allocate capital to a specific price range, making the protocol more capital efficient.$UNI
