UniSwap

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UniSwap
Uniswap.png
Developer(s) Hayden Adams
Repository https://github.com/Uniswap
Written In Vyper, JavaScript
License GPLv3
Website https://uniswap.io
The constant product market maker model used in UniSwap.

UniSwap is a decentralized exchange protocol. Similar to Bancor it uses an automated market maker mechanism instead of order matching to fulfill trade. The Ethereum foundation supplied funding to the project with a $100,000 grant.[1] The developer has recently incorporated a company around UniSwap and recruited some initial employees. He is yet to reveal the details of his business.

The idea for UniSwap originated in a blog post by Vitalik Buterin.

Anyone can fund a UniSwap market and receive part of the 0.3% fee split proportionally among liquidity providers. Supplying liquidity in a ratio divergent from the real exchange rate will result in a loss to the provider due to arbitrage. Liquidity providers can also arbitrage themselves to save money. Liquidity providers lose money when prices diverge although this is path-independent.

UniSwap uses Ether (not WETH) as a base token whereas Bancor uses BNT.

UniSocks

UniSocks was a promotional experiment. The idea was to incorporate price discovery into collectible items (which are normally sold at one fixed price). UniSocks tokens were deposited in a liquidity pool along with ether. The socks tokens were dynamically priced by the forces of price discovery and settled at around $40 USD. The tokens were later made redeemable for the physical merchandise.

See also

UniSwap is pretty popular and there is a myriad of third party tools/frontends/ROI calculators people have built:

In addition certain wallets ship with their own UniSwap front-end.