What is Uniswap
Uniswap is an alternative decentralised cryptocurrency exchange, which appeared thanks to the financial support of Ethereum. It is based on an open peer-to-peer protocol composed of immutable smart contracts. Thanks to this technology, you can trade, as well as arrange the exchange of ETH and other ERC-20 coins without the need to refer to the order book.
The platform works according to the following principles: high security, lack of censorship, as well as unlimited work without intermediaries. Naturally, it lists its cryptocurrency, the native UNIs token, which is in the TOP-25 altcoins of the world in capitalisation.
At the first stages, Uniswap was based on Ethereum and therefore could not boast of high-speed execution of transactions: they were executed up to 1.2 minutes. In an attempt to rectify the situation, the developers made the decision to move to the second layer of software from Optimism, which they deployed on top of the core network. That has significantly increased throughput, and now transactions are processed instantly.
The developers pre-set the maximum number of tokens at the level of 1 billion. By August 2021, more than 61% were in free circulation. In addition to the imminent release threshold, the developers have announced that in 2022 they plan to implement a perpetual token inflation mechanism with an annual increment of 2%. That will help the project to get the support of Uniswap holders.