Uniswap V1, V2 & V3 Explained: What Are Their Core Features And Differences?
Uniswap launched on 2nd November 2018, created by Hayden Adams. Less than four years later, it has morphed into the largest and most popular decentralized exchange. During this time, it has onboarded more than 3 million crypto traders and processed more than $1.1 Trillion worth of crypto trades. Investors have also locked more than $7 Billion worth of crypto to the platform, and UNI has been integrated into 300+ DeFi apps and programs.
Uniswap’s edge over competing DEXs stems from its use of the automated market maker (AMM) liquidity model and not the conventional buyer-seller order book. The use of the AMM liquidity model was first explained by Ethereum co-founder — Vitalik Buterin — who was also instrumental in the launch of Uniswap. It is also built on an open-sourced technology and allows virtually anyone to contribute liquidity and share in the earnings made by the specific pool.
So far, Uniswap has been upgraded twice, effectively providing the market with Uniswap V2 and Uniswap V3.
