Overview
Uniswap is the largest and best-known decentralized exchange (DEX) in crypto. It was launched in November 2018 by Hayden Adams, and it popularized the idea of the automated market maker (AMM): instead of matching buyers and sellers in an order book, you trade against a pool of two tokens, and a formula sets the price. Anyone can add liquidity to a pool and earn a share of the trading fees.
There is no account, no sign-up and no KYC. You connect a wallet such as MetaMask, Rabby or the Uniswap Wallet, choose two tokens and swap. Your coins stay in your own wallet until the moment of the trade.
Since launch, Uniswap has processed more than $3 trillion in trading volume. It runs on Ethereum and on a long list of other networks, including Arbitrum, Base, Optimism, Polygon, BNB Chain, Avalanche, Unichain and, since 2026, Robinhood Chain.
How Uniswap works: v2, v3 and v4
Uniswap has gone through several versions, and all of them still run side by side.
- v2 (2020): simple pools where your liquidity is spread across all prices. Easy to use, but capital-inefficient. Every v2 pool charges 0.30% per swap.
- v3 (2021): introduced concentrated liquidity. Liquidity providers (LPs) choose a price range, so the same money earns more fees, but the position stops earning if the price leaves the range. Pools come in fee tiers of 0.01%, 0.05%, 0.30% and 1%.
- v4 (January 2025): all pools live in one contract (cheaper swaps and pool creation), native ETH is supported again, and hooks let developers add custom logic to a pool, such as dynamic fees, limit orders or on-chain auctions. Fees in v4 can be any level the pool creator sets.
As a trader you do not need to pick a version. The Uniswap app routes your swap through whichever pools give the best price, sometimes splitting it across several.
Other products
- Uniswap app and Uniswap Wallet: the web app at app.uniswap.org and a self-custody mobile and browser wallet.
- UniswapX: an intent-based system where you sign an order and competing “fillers” execute it. Swaps can be gasless for you, protect against MEV (bots that front-run your trade), and work across chains.
- Unichain: Uniswap’s own layer-2 network, launched in February 2025, built for fast, cheap DeFi trading.
- Token launches: in 2026 Uniswap added tools for on-chain token auctions built on v4 hooks.
- Limit orders and fiat on-ramps through partners in the app.
Fees
What you pay on Uniswap has three parts:
| Cost | Typical amount | Notes |
|---|---|---|
| Pool (LP) fee | 0.01% – 1% | Depends on the pool; stablecoin pairs are cheapest |
| Interface fee | 0% | Removed by the UNIfication proposal (December 2025) |
| Network (gas) fee | Cents on L2s; more on Ethereum | Paid to the blockchain, not to Uniswap |
Two other costs matter: price impact (a big trade in a small pool moves the price) and slippage (the price can change between signing and confirmation). The app shows both before you confirm.
For most people, the cheapest way to use Uniswap is on a layer-2 such as Base, Arbitrum or Unichain, where gas costs a few cents. On Ethereum mainnet, gas can make small swaps expensive.
Rates at the time of writing (October 2026). The app shows the exact cost of each swap before you sign.
The UNIfication fee switch
For years, all trading fees went to liquidity providers and UNI holders got nothing. That changed with the UNIfication proposal, approved by UNI holders with almost unanimous support on 25 December 2025:
- A protocol fee was switched on for v2 and v3 pools. On v2, LPs now keep 0.25% of the 0.30% fee and the protocol takes 0.05%. On v3, the protocol share depends on the fee tier.
- Protocol fees are used to buy back and burn UNI. 100 million UNI was also burned from the treasury.
- Uniswap Labs removed its interface fee and now receives a yearly budget of 20 million UNI from the DAO.
In July 2026, another vote extended the fee switch to v4 pools on seven networks, including Ethereum, Arbitrum, Base, BNB Chain and Robinhood Chain. Reported daily protocol revenue roughly tripled afterwards.
For traders, very little changed: swap prices are the same. For liquidity providers, returns are slightly lower, and some LPs have complained or moved to other DEXs. For UNI holders, the token now has a direct link to trading activity, although the UNI price fell sharply in the months after the vote.
Security
- No hack of Uniswap’s core contracts since launch. The code is open source, has been audited many times, and v4 came with one of the largest bug bounties in crypto ($15.5 million).
- In the US, the SEC closed its investigation into Uniswap Labs in February 2025 without taking action.
- Self-custody: Uniswap never holds your funds, so there is no exchange that can freeze your account or go bankrupt with your money.
The real risks are on the user’s side:
- Fake tokens: anyone can create a token and a pool. Always check the contract address on the project’s official site or on CoinGecko before buying. The app warns about unverified tokens; take the warning seriously.
- Phishing sites that copy the Uniswap app. Bookmark app.uniswap.org.
- Unlimited token approvals: review and revoke old approvals from time to time.
- Impermanent loss for liquidity providers, especially in concentrated v3 or v4 positions.
Pros and cons
Pros
- The deepest on-chain liquidity for Ethereum and most L2 tokens
- Fully self-custodial: no account, no KYC
- Available on many networks, with cheap swaps on L2s
- No interface fee since December 2025
- UniswapX offers gasless, MEV-protected swaps
- Strong security record and open-source code
Cons
- Gas on Ethereum mainnet can make small trades expensive
- Easy to buy scam tokens if you don’t check the contract address
- Concentrated liquidity is complex for new liquidity providers
- The fee switch lowered LP earnings slightly
- No customer support in the usual sense: mistakes cannot be reversed
Uniswap vs. alternatives
| Uniswap | SushiSwap | PancakeSwap | |
|---|---|---|---|
| Launched | 2018 | 2020 | 2020 |
| Main networks | Ethereum & L2s | Many chains | BNB Chain |
| Typical pool fees | 0.01% – 1% | 0.01% – 1% | 0.01% – 1% |
| Interface fee | None | None | None |
| Core contract hack | Never | 2023 router exploit | Never (2021 DNS hijack) |
Our verdict
Uniswap is the default choice for swapping tokens on Ethereum and its layer-2 networks. It has the deepest liquidity, a clean app, a strong security record and, since the end of 2025, no interface fee. For beginners who are ready to use a self-custody wallet, it is the best place to start with DeFi.
To get the most out of it, trade on a layer-2 like Base, Arbitrum or Unichain, always check the token contract address, and keep an eye on slippage. Providing liquidity is a separate skill: start with small amounts and learn how price ranges and impermanent loss work before committing serious money.
This review is for information only and is not financial advice. Crypto is volatile and you can lose money.