Uniswap is a protocol as well as a decentralized cryptocurrency trading platform that permits token exchanges and is available to all Ethereum users. The primary goal of Uniswap is to ensure optimum liquidity for these consumers.
The system is powered by liquidity pools, which are types of token reserves kept on a smart contract and used to execute transactions. The Automated Market Maker then determines the exchange rate between the assets.
Uniswap permits trades without a trustworthy third party. Because of its simplicity, Uniswap is highly transparent. Smart contracts are accessible for anyone to establish simply exchange pairs.
Uniswap is a semi protocol and the payments are exclusively payable to system users. This makes it possible for customers to pay very minimal fees, thereby making transactions at cheap cost, compared with existing decentralized exchanges.