Uniswap (UNI) is the largest decentralized exchange (or DEX) operating on the Ethereum blockchain. Uniswap was launched in November 2018 as an automated market maker (AMM), a system that aims to provide liquidity to the market by using algorithms to set the price of a token. It allows users anywhere in the world to trade crypto without any intermediary by facilitating automated trading of decentralized finance (DeFi) tokens. Uniswap was one of the first DeFi applications to gain traction on Ethereum, and is now one of the largest cryptocurrencies by market cap on Coinbase. In September 2020, Uniswap introduced its own governance token, UNI, which added the potential for users to receive compensation and the ability for users to shape their future.

Uniswap pioneered the Automated Market Maker model, in which users can supply tokens to any of Uniswap's liquidity pools and then have algorithms set market prices based on supply and demand (as opposed to order books, which match bids and asks from users on a centralized exchange like Coinbase). By supplying tokens to Uniswap liquidity pools, users earn rewards while enabling peer-to-peer trading. The UNI token allows UNI holders to participate in the governance of the Uniswap protocol and wider ecosystem.

Uniswap was created by Ethereum developer Hayden Adams, which was direclty inspired by one of Vitalik Buterin's (founder of Ethereum) own blog posts. Uniswap V2 was launched on Nov. 2, 2018, and introduced new features. The latest version, Uniswap V3, was launched on the Ethereum mainnet on May 5, 2021. It features greater capital efficiency for liquidity providers, better execution for traders, and enhanced infrastructure.

After years of successful operation and on its path to complete decentralization, Uniswap introduced the UNI token with the aim to enable community ownership over the protocol, allowing stakeholders to vote on key protocol changes and development initiatives. When Uniswap released the token in September 2020, it used a unique form of distribution in which it "airdropped", meaning sent out, 400 UNI tokens to each Ethereum address that had ever used the protocol. Over 250,000 Ethereum addresses received the airdrop, which was worth nearly $1,400 at the time. Airdrops have since become a popular way for DeFi apps to reward longtime users – Uniswap has said it plans to distribute a total of 1 billion UNI over four years.

In order to use Uniswap, all you need is an Ethereum wallet and a bit of ETH (which you'll need to pay for gas fees). Popular options include Coinbase Wallet or Metamask. Using the app or web browser built into Coinbase Wallet or Metamask, you can access app.uniswap.org to start swapping tokens or supplying liquidity.