Uniswap is an Ethereum-based protocol that enables users to swap tokens without intermediaries by utilizing automated liquidity pools instead of traditional buyer-seller matching. This decentralized exchange (DEX) strives to address issues typical of centralized exchanges, such as hacking risks and mismanagement. Uniswap utilizes a constant product formula (x * y = k) to determine token prices based on the balance of tokens in liquidity pools. Launched in 2018, it gained traction especially with the introduction of Uniswap V2 in 2020, which facilitated direct ERC-20 token swaps. The 2021 launch of Uniswap V3 incorporated features like concentrated liquidity and multiple fee tiers, enhancing usability for liquidity providers. In 2025, Uniswap V4 introduced cheaper liquidity pools and modular plugins for customization. Additionally, Uniswap launched its own layer-2 blockchain, Unichain, in early 2025, aiming to expedite DeFi transactions. The platform faced regulatory scrutiny but successfully navigated investigations by the SEC without facing charges. As of early 2025, the Uniswap community continues to advocate for growth and innovation, cementing its position in the DeFi landscape.

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