Genesis

Uniswap is a decentralized exchange in the form of two smart contracts hosted on the Ethereum blockchain, as well as a public, open source front-end client. It’s a 100% on-chain market maker allowing the swapping of ERC20 tokens, as well as ETH to an ERC20, and vice-versa.

Smart Contract-Based Liquidity Pools

A liquidity pool is a smart contract that holds (at least) two crypto assets in reserve and allows anyone to deposit tokens of one type and thereby withdrawing tokens of the other type. To determine the exchange rate, smart contract-based liquidity pools use variations of the constant product…