Uniswap — FAQ

Uniswap is a decentralized exchange protocol built on Ethereum that uses an Automated Market Maker model instead of traditional order books. Liquidity providers deposit token pairs into smart contract pools, and traders swap against those pools at algorithmically determined prices. Every transaction settles on-chain, meaning no central party controls or custodies your funds at any point.

Pool fees on this exchange range from 0.01% to 1.00% depending on the token pair selected. Stablecoin pairs typically carry the lowest fees, while volatile or low-liquidity altcoin pairs sit at the higher end. Gas fees for on-chain transactions are separate and depend on network congestion; using a Layer 2 network like Arbitrum or Optimism can reduce gas costs to just a few cents.

The protocol has been independently audited by multiple top-tier blockchain security firms and has operated without a major smart contract exploit since its 2018 launch. Because the service is non-custodial, your funds remain in your own wallet until the moment a swap executes. As with any DeFi platform, users should verify token contract addresses independently and exercise caution with newly launched, unaudited tokens.

No account, email address, or KYC verification is required. Simply navigate to app.uniswap.org, connect a compatible Web3 wallet such as MetaMask or Coinbase Wallet, and you can start swapping tokens immediately. This permissionless access is one of the core principles that distinguishes the platform from centralized exchanges.

In 2026, the protocol is deployed on Ethereum mainnet plus a growing list of EVM-compatible networks including Arbitrum, Optimism, Polygon, Base, BNB Chain, and Avalanche. Traders can switch between networks directly within the app interface. Layer 2 networks are particularly popular for low-cost, high-speed swaps.

Because token listing is permissionless, this exchange supports thousands of ERC-20 and compatible tokens across its supported networks. Major assets like ETH, WBTC, USDC, USDT, DAI, and UNI are available alongside a vast universe of altcoins, DeFi tokens, and newly launched projects. Traders should always verify token contract addresses to avoid counterfeit or scam tokens.

UNI is the native governance token of the Uniswap protocol, giving holders the right to vote on protocol upgrades, fee parameters, treasury allocations, and other governance proposals. It does not represent equity or a share of protocol revenue by default, though governance can vote to change fee distribution. UNI can be traded freely on the platform itself and on many other exchanges.