Created by Hayden Adams in November 2018, Uniswap is the shining light of the DeFi (Decentralized Finance) world. It is a decentralized exchange where users can directly swap tokens or create markets (called liquidity pools) by locking in their tokens and earning yield. The governance token of Uniswap is “UNI.”
Uniswap championed the automated market-making (AMM) mechanism. The AMM uses smart contracts to automate the price matching process and remove the need for an intermediary between a maker and a taker.