The Uniswap company was founded by Hayden Adams, a former mechanical engineer at Siemens. It was founded 2018, and is located in New York. A decentralised finance protocol that enables peer-to-peer market-making and is used to exchange cryptocurrencies and tokens. This platform works based on a business model. The name itself says it is unique and doesn’t use an order book to derive the price of the asset. The primary currency that this platform uses is Ethereum, the platform has received investments from venture capital firms including Union Square Ventures LLC, Paradigm Venture Capital, and ParaFi.
The traders and the investors are using Uniswap because of its usage in decentralised finance (Defi). Here, blockchain networks run on open-source software and are completely different from other cryptocurrency exchanges, which are run by centralised companies. Trading fees and the UNI token are different ways in which to make money. It allows users anywhere in the world to trade crypto without an intermediary. The first version of the uniswap protocol was as a proof of concept for AMMs (Automated Market Makers), and the latest version is to allocate liquidity within a certain price range by introducing new options. Here, users can swap tokens using liquidity provided by other users and charge a small fee whenever a trade is made.