Introduction

Uniswap is one of the most well-known decentralized exchanges (DEX) in the DeFi space, providing a platform for users to trade cryptocurrencies directly from their wallets without the need for intermediaries. Launched in 2018, Uniswap introduced the concept of automated market making (AMM), where liquidity pools are created by users who deposit assets into smart contracts. This innovation has made Uniswap a cornerstone of the DeFi ecosystem, enabling decentralized, permissionless trading on the Ethereum blockchain and beyond.

Performance Metrics Against Competitors

Performance metrics are as of August 2024.

Metric	Uniswap	SushiSwap	PancakeSwap	Curve
Total Value Locked (TVL)	$3.9 billion	$1.6 billion	$1.2 billion	$4.1 billion
Daily Trading Volume	$1.1 billion	$120 million	$400 million	$300 million
Number of Liquidity Pools	4000+	500+	800+	100+
Average Slippage	0.03%	0.1%	0.05%	0.02%
Trading Fees	0.30%	0.30%	0.20%	0.04%
Yield for Liquidity Providers	5%-10%	10%-15%	7%-12%	4%-6%

Supported Blockchains

Uniswap initially launched on the Ethereum blockchain, but it has expanded to support additional networks to reduce costs and improve accessibility. The supported blockchains include:

• Ethereum: The original network where Uniswap was launched.
• Polygon: A Layer 2 scaling solution for faster and cheaper transactions.
• Arbitrum: A Layer 2 scaling solution for Ethereum, offering efficient and low-cost transactions.
• Optimism: Another Layer 2 scaling solution designed to enhance Ethereum’s scalability.

Tokenomics

• Total Supply: 1,000,000,000 UNI tokens
• Current Circulating Supply: 753,766,667 UNI tokens
• Emission Rate: UNI tokens are distributed over four years, with a decreasing rate each year.
• Token Utility: The UNI token is primarily used for governance, allowing holders to vote on protocol upgrades and changes. UNI also serves as an incentive for liquidity providers and as a reward mechanism in the Uniswap ecosystem.

Main Investors

Investor	Token Holdings	Percentage of Total Supply
Andreessen Horowitz	60,000,000 UNI	6.00%
Paradigm	50,000,000 UNI	5.00%
Union Square Ventures	40,000,000 UNI	4.00%
Polychain Capital	30,000,000 UNI	3.00%

Founders and History

Uniswap was founded by Hayden Adams in 2018. Adams, a former mechanical engineer, developed Uniswap with the inspiration from Vitalik Buterin, the co-founder of Ethereum. Uniswap’s AMM model revolutionized decentralized trading by eliminating the need for traditional order books, instead using liquidity pools to facilitate trades.

Uniswap’s growth has been exponential, becoming the leading DEX by trading volume and liquidity. Its success has spurred numerous forks and inspired other DEXs, solidifying its position as a pioneer in the DeFi space. The protocol’s continued development is driven by the Uniswap community and governance, with UNI token holders playing a key role in its evolution.