Uniswap is a decentralized exchange (DEX) that lets you swap cryptocurrencies directly from a self-custody wallet, without an order book or traditional intermediary.
It uses automated market makers (AMMs) and operates across multiple blockchain networks and protocol versions, with Uniswap v4 adding customizable liquidity pools and hooks that let developers change how pools work.
Great for copy trading
Great for beginners
Advanced crypto trading
Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.
Uniswap is a decentralized exchange (DEX) that lets you swap cryptocurrencies directly from a self-custody wallet. It uses an automated market maker (AMM) model, where trades are made against liquidity pools rather than through a traditional order book.
Because Uniswap is non-custodial, your crypto stays in your wallet until you approve a transaction. You’ll need a compatible self-custody wallet and enough of the network’s native token to cover applicable transaction fees.
Different versions of the protocol offer different features:
| Version | What it does |
|---|---|
| Uniswap v2 | Uses traditional liquidity pools where liquidity is distributed across the full price range. |
| Uniswap v3 | Introduced concentrated liquidity, allowing liquidity providers to choose specific price ranges for their funds. |
| Uniswap v4 | Adds customizable pools, hooks, flexible fees and other features that give developers and liquidity providers more control. |
Uniswap began on Ethereum and now operates across multiple blockchain networks, including Arbitrum, Base, Optimism, Polygon and Unichain. The tokens, pools, fees and features available can vary depending on the network and Uniswap version.
When you swap tokens on Uniswap, you’re trading against liquidity available in a pool rather than directly with another trader. Uniswap uses the pool’s available liquidity to calculate the exchange rate for your trade.
The amount you receive can change based on market conditions and available liquidity, so always review the transaction details before confirming a swap.
Uniswap doesn’t charge one universal fee. The cost of a swap depends on the Uniswap version, liquidity pool and blockchain network you’re using. You may also pay network fees that are separate from Uniswap’s own fees.
| Cost | What it is | Who receives it? |
|---|---|---|
| Swap fee | A fee charged on each swap that varies by pool and Uniswap version. | Liquidity providers, although a portion may go to the protocol where protocol fees are enabled |
| Protocol fee | A portion of the swap fee directed to the Uniswap protocol on eligible pools. | The protocol, through its fee-collection mechanism |
| Network fee | The cost of processing your transaction on the blockchain. | The network’s validators or sequencers |
Uniswap v2 has a 0.30% swap fee, while v3 uses different fee tiers. Uniswap v4 allows pools to use flexible fees, including dynamic fees that can change based on market conditions.
The amount you’ll pay depends on the pool and network, so no single fee applies to every trade. Before confirming a swap, review the quoted amount, swap fee, network fee and price impact in your wallet or on the Uniswap interface.
Uniswap v4 makes fees even more flexible: pool creators can set different fees, and some pools can use hooks to adjust fees dynamically. This means the fee you pay can vary from one pool or trade to another.
You can swap tokens on Uniswap directly from a compatible self-custody wallet. Before you start, make sure you have the tokens you want to swap and enough of the network’s native token to cover any applicable transaction fees.
Slippage is the difference between the price you expect to receive and the price you actually get when your swap is executed. Prices can change between the time you submit a transaction and when it’s processed, particularly when a token has low liquidity or you’re making a large trade.
A higher slippage tolerance can make a transaction more likely to go through, but it also means you could receive a worse price than expected. Don’t set your slippage tolerance higher than you’re comfortable with.
Because Uniswap is permissionless, anyone can create a token and a liquidity pool. A token appearing in Uniswap does not mean it has been verified or is legitimate.
Before swapping, check:
Never assume a token is legitimate simply because it appears in a search result or has a familiar name.
Uniswap v4 is the latest version of the Uniswap protocol. It builds on the concentrated liquidity model introduced in v3 while giving developers and liquidity providers more control over how individual pools operate.
| Feature | What it means |
|---|---|
| Hooks | Smart contract extensions that let developers customize how pools, swaps, fees and liquidity positions behave. |
| Flexible fees | Pools can use different fee levels, including dynamic fees that change based on certain conditions. |
| Singleton | A single smart contract manages multiple liquidity pools, reducing the amount of contract interaction needed for some transactions. |
| Flash accounting | The protocol tracks the net token balances needed during a transaction, which can reduce unnecessary token transfers and network costs. |
| Native ETH | v4 can use ether (ETH) directly rather than requiring it to be wrapped into WETH for every pool. |
Hooks are one of the biggest changes in v4. They can be used for features such as dynamic fees, on-chain limit orders and other custom pool behavior.
For traders, v4 can mean more pool options, potentially lower transaction costs and more flexible trading features. For liquidity providers, it offers more ways to customize how their liquidity is used and how fees are collected.
The tradeoff is greater complexity. Not every v4 pool works exactly the same way, and pools using third-party hooks can introduce additional risks. Hooks are developed independently and can affect swaps or liquidity positions in ways users may not expect, so check what a hook does before interacting with a pool that uses one.
You don’t need to understand Uniswap’s underlying architecture to make a basic swap. However, if you’re providing liquidity or choosing between v4 pools, understanding the pool’s fee structure, price range and any attached hooks can help you understand what you’re actually agreeing to.
Uniswap lets users provide tokens to liquidity pools and earn a share of the trading fees generated by those pools. In return, liquidity providers (LPs) take on risks that don’t apply when simply holding the tokens.
A liquidity provider deposits tokens into a Uniswap liquidity pool so other users can trade against that pool. Depending on the pool and Uniswap version, you may need to deposit two tokens in a specific proportion or choose a price range for your liquidity.
LPs can earn a portion of the trading fees generated by swaps through the pool. Your potential earnings depend on factors such as the pool’s trading volume, liquidity, fee rate and your share of the pool.
Earning fees does not guarantee a profit. The value of your position can fall, and fees may not compensate for losses caused by changes in the relative prices of the tokens.
Uniswap v3 and v4 allow LPs to provide concentrated liquidity, meaning they can choose a specific price range where their funds are used for trading. Concentrating liquidity can make capital more efficient and potentially increase fee earnings when the market remains within the selected range.
The tradeoff is that your liquidity can become inactive if the market moves outside your range. You may then stop earning trading fees until you adjust your position or the price moves back into range.
Providing liquidity can expose you to:
Providing liquidity is more complex and carries different risks than simply swapping tokens, so understand the pool and its fee and price-range settings before depositing funds.
Uniswap is a major, established decentralized exchange protocol, but that doesn’t mean every token, liquidity pool or transaction available through it is safe. Unlike a centralized exchange, Uniswap is permissionless, so users have greater control over their assets but also more responsibility for evaluating what they interact with.
The main risks include:
UNI is the governance token of the Uniswap Protocol. UNI holders can participate in governance decisions, including proposals involving protocol fees, treasury funds and other changes to how the protocol operates.
UNI is not the token you use to trade on Uniswap, and owning UNI does not automatically give you a share of Uniswap’s trading fees or protocol revenue.
Under Uniswap’s current fee model, protocol fees collected from eligible Uniswap products are used to acquire UNI, which is then permanently burned. This reduces the amount of UNI in circulation over time, but it is not the same as paying revenue directly to UNI holders.
The protocol-fee and UNI-burn mechanism was introduced through Uniswap’s 2025 UNIfication rollout.(1) Governance has since expanded protocol-fee activation to additional Uniswap products and networks, including selected v4 pools.
In short, UNI gives holders governance rights and is part of Uniswap’s current value-accrual mechanism, but it does not function like a traditional stock that pays holders a portion of company revenue.
Uniswap offers more control and access than a traditional centralized exchange, but that flexibility comes with additional complexity and risk.
Uniswap can be a good choice if you want direct access to DeFi and control over your own crypto, but it requires more responsibility than using a centralized exchange.
Uniswap may make sense if you:
A centralized exchange may be easier if you:
The right choice depends on how much control and flexibility you want versus how much convenience and support you value. Uniswap gives you more direct control over your transactions, while a centralized exchange can be simpler for everyday buying and selling.
Uniswap is one of the largest decentralized exchanges and offers direct, self-custody access to a broad range of crypto assets across multiple networks. Its flexibility comes with more responsibility than a centralized exchange, including managing your own wallet, understanding transaction costs and evaluating the risks of individual tokens and liquidity pools.
For users comfortable with DeFi, Uniswap can be a powerful trading and liquidity platform. For beginners who prioritize convenience and customer support, a centralized exchange may be a better fit.
DAOs are already replacing traditional business models and revolutionizing the world of investing. Find out how they work and how to invest.
Lido’s liquid staking allows investors holding LUNA and less than 32 ETH to reap the rewards of DeFi staking.
DeFi tokens power governance, rewards and more in decentralized finance. Here’s how they work, popular examples and the risks to know.
Learn how to save on Ethereum gas fees by using the Loopring decentralized exchange, and earn money as a liquidity provider.
MakerDAO is now Sky. Here’s how DAI, USDS, MKR and SKY work, how to earn savings and the risks to know before you use it.
Earn, lend and govern crypto assets with Compound — no banks, just smart contracts and community control.
A beginner-friendly guide to liquidity pools — covering what they are, how they operate and their potential benefits and pitfalls.
Learn how to manage DeFi investments with Zapper.fi. We present the pros, cons and risks associated with this liquidity management tool.
Discover what an automated market maker is in DeFi and what it offers in comparison to the traditional market-making system.
