UniSwap is a decentralized exchange protocol. Similar to Bancor it uses an automated market maker mechanism instead of order matching to fulfill trade. It was developed by former mechanical engineer Hayden Adams with no previous programming experience over about one year. Adams received a $100,000 grant from the Ethereum foundation for development of UniSwap instead of seeking venture funding or doing an ICO. He has recently incorporated a company in the Decentralized Finance space 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 receieve 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 lose money when prices diverge although this is path-independent.
UniSwap uses Ether (not WETH) as a base token whereas Bancor uses BNT.
UniSocks is an ongoing promotional experiment. UniSocks tokens are deposited in a liquidity pool along with ether. The socks tokens are dynamically priced by the forces of price discovery. The tokens are exchangable for real socks after a certain period of time.