{"id":21413,"date":"2026-06-26T12:01:44","date_gmt":"2026-06-26T12:01:44","guid":{"rendered":"https:\/\/zebpay.com\/in\/?p=21413"},"modified":"2026-06-26T12:24:36","modified_gmt":"2026-06-26T12:24:36","slug":"what-is-uniswap","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap","title":{"rendered":"What is Uniswap: A Complete Guide!"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_Uniswap\" >What is Uniswap?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#How_Does_it_Work\" >How Does it Work?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_the_UNI_Token_and_What_is_it_Used_For\" >What is the UNI Token and What is it Used For?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#UNI_as_a_Governance_Token\" >UNI as a Governance Token<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#How_to_Earn_UNI_Tokens\" >How to Earn UNI Tokens<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Uniswap_V2_vs_V3_vs_V4_What_Changed\" >Uniswap V2 vs. V3 vs. V4: What Changed?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Key_Upgrades_Introduced_in_Each_Version\" >Key Upgrades Introduced in Each Version<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#How_to_Provide_Liquidity_on_Uniswap\" >How to Provide Liquidity on Uniswap<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_Are_the_Risks_of_Providing_Liquidity\" >What Are the Risks of Providing Liquidity?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_Impermanent_Loss_and_How_Does_it_Affect_You\" >What is Impermanent Loss and How Does it Affect You?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Uniswap_Fees_How_Much_Does_it_Cost_to_Swap\" >Uniswap Fees: How Much Does it Cost to Swap?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Gas_Fees_vs_Protocol_Fees_on_Uniswap\" >Gas Fees vs. Protocol Fees on Uniswap<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Uniswap_vs_Other_DEXs_How_Does_It_Compare\" >Uniswap vs. Other DEXs: How Does It Compare?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Uniswap_vs_SushiSwap\" >Uniswap vs. SushiSwap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Uniswap_vs_PancakeSwap\" >Uniswap vs. PancakeSwap<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Is_Uniswap_Safe_to_Use\" >Is Uniswap Safe to Use?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Smart_Contract_Risks_and_Audits\" >Smart Contract Risks and Audits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#How_to_Avoid_Scam_Tokens_on_Uniswap\" >How to Avoid Scam Tokens on Uniswap<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#FAQs_on_Uniswap\" >FAQs on Uniswap<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_Uniswap_and_how_does_it_work\" >What is Uniswap and how does it work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#Is_Uniswap_safe_to_use\" >Is Uniswap safe to use?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_the_UNI_token_used_for\" >What is the UNI token used for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_impermanent_loss_on_Uniswap\" >What is impermanent loss on Uniswap?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-uniswap\/#What_is_the_difference_between_Uniswap_V2_and_V3\" >What is the difference between Uniswap V2 and V3?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">As crypto adoption has grown, centralised exchanges have become the primary gateway for buying, selling, and trading digital assets. Their deep liquidity, user-friendly interfaces, and efficient trade execution have made them the preferred choice for millions of users worldwide. However, these platforms are still operated by a central entity that oversees users&#8217; funds, transactions, and platform operations. This has fuelled the rise of decentralised exchanges (DEXs), which enable peer-to-peer trading without relying on a central intermediary. Among them, Uniswap stands out as one of the most widely adopted protocols. Its most recent major version, Uniswap V4, which went live in January 2025, builds on years of innovation in decentralised trading and liquidity provision, while earlier versions such as V3 remain widely used across the ecosystem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Uniswap\"><\/span><strong>What is Uniswap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As mentioned earlier, Uniswap is a decentralised exchange (DEX) built on the Ethereum blockchain. Unlike centralised exchanges that are managed by a single company or organisation, Uniswap operates through self-executing <a href=\"https:\/\/zebpay.com\/in\/blog\/smart-contracts-on-the-blockchain\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>smart contracts<\/strong><\/a>, allowing users to trade directly from their wallets without relying on an intermediary. This decentralised structure means no single entity owns or controls the protocol.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Historically, the swap fees collected on Uniswap went entirely to liquidity providers rather than to a company. This changed in December 2025, when UNI token holders voted to activate the protocol&#8217;s long-dormant &#8220;fee switch.&#8221; Liquidity providers still earn the majority of every swap fee, but a small share is now directed to an on-chain mechanism that burns UNI tokens, linking protocol usage to the token&#8217;s supply.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_it_Work\"><\/span><strong><strong>How Does it Work?<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most centralised exchanges rely on an order book model, where buy and sell orders from users are matched to facilitate trades. For example, if you want to sell $100 worth of Ethereum, the transaction can only be completed when another user is willing to buy the same amount at a matching price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Uniswap takes a different approach. Instead of matching buyers and sellers through an order book, it uses Automated Market Makers (AMMs) and liquidity pools to execute trades. These mechanisms are powered by smart contracts, allowing users to swap tokens instantly without needing a counterparty on the other side of the transaction.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_UNI_Token_and_What_is_it_Used_For\"><\/span><strong>What is the UNI Token and What is it Used For?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The UNI token, often referred to as the Uniswap coin, is the native governance token of the Uniswap ecosystem. Introduced in September 2020, it allows token holders to participate in the protocol&#8217;s decision-making process. UNI is not used as a payment or trading-fee token within the exchange. Its primary role is governance, giving the community a voice in shaping the protocol&#8217;s future. Following the December 2025 &#8220;UNIfication&#8221; vote, UNI also gained a value-accrual role: a portion of protocol fees is now used to burn UNI, tying the token more directly to the protocol&#8217;s activity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"UNI_as_a_Governance_Token\"><\/span><strong>UNI as a Governance Token<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">UNI holders can vote on proposals related to protocol upgrades, treasury allocation, fee mechanisms, and other ecosystem developments. This governance model ensures that major decisions are made collectively by the community instead of a central authority. The more UNI tokens a user holds (or has delegated), the greater their voting power.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Earn_UNI_Tokens\"><\/span><strong>How to Earn UNI Tokens<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There are several ways to obtain UNI tokens:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Purchase UNI from a crypto exchange.<\/li>\n\n\n\n<li>Receive UNI through governance incentive programmes, if available.<\/li>\n\n\n\n<li>Earn rewards by participating in ecosystem campaigns or liquidity mining initiatives introduced by partner protocols.<\/li>\n\n\n\n<li>Participate in community grants and development programmes that distribute UNI incentives.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">While many users track the Uniswap price before investing, it is important to remember that UNI&#8217;s value is tied to its role in governance, broader ecosystem growth, and, since the December 2025 fee-switch activation, a fee-driven token-burn mechanism. <\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read: <a href=\"https:\/\/zebpay.com\/in\/blog\/npci-introduces-drunix-to-advance-enterprise-blockchain-adoption\" target=\"_blank\" rel=\"noreferrer noopener\">NPCI Introduces Drunix to Advance Enterprise Blockchain Adoption<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uniswap_V2_vs_V3_vs_V4_What_Changed\"><\/span><strong>Uniswap V2 vs. V3 vs. V4: What Changed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Upgrades_Introduced_in_Each_Version\"><\/span><strong>Key Upgrades Introduced in Each Version<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong><span style=\"text-decoration: underline;\">Version<\/span><\/strong><\/td><td><strong><span style=\"text-decoration: underline;\">Major Improvements<\/span><\/strong><\/td><\/tr><tr><td><strong>Uniswap V2<\/strong><\/td><td>ERC-20 to ERC-20 token swaps, flash swaps, improved price oracles, and broader token compatibility.<\/td><\/tr><tr><td><strong>Uniswap V3<\/strong><\/td><td>Introduced concentrated liquidity, multiple fee tiers, and greater capital efficiency for liquidity providers.<\/td><\/tr><tr><td><strong>Uniswap V4<\/strong><\/td><td>Added hooks that allow developers to customise pool behaviour, a singleton architecture for lower gas costs, and native ETH support for improved efficiency.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Provide_Liquidity_on_Uniswap\"><\/span><strong>How to Provide Liquidity on Uniswap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Providing liquidity on Uniswap involves depositing two tokens of equal value into a liquidity pool using a compatible crypto wallet. Once the assets are deposited, liquidity providers receive a pool position and earn a share of the trading fees generated by swaps within that pool. The exact returns depend on trading volume, the chosen fee tier, and overall market activity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_the_Risks_of_Providing_Liquidity\"><\/span><strong>What Are the Risks of Providing Liquidity?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Although liquidity provision can generate passive income, it also carries risks. Market volatility can affect returns, while lower trading activity may reduce fee earnings. Smart contract vulnerabilities, despite multiple audits, remain another consideration. Liquidity providers should understand these risks before committing capital.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Impermanent_Loss_and_How_Does_it_Affect_You\"><\/span><strong>What is Impermanent Loss and How Does it Affect You?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Impermanent loss occurs when the price of the deposited tokens changes relative to when they were added to the pool. As traders rebalance the pool, the value of a liquidity provider&#8217;s holdings may become lower than if the assets had simply been held in a wallet. The loss is termed &#8220;impermanent&#8221; because it may decrease if prices return to their original levels, although it becomes permanent once liquidity is withdrawn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read: <a href=\"https:\/\/zebpay.com\/in\/blog\/zebpay-achieves-iso-27001-2022-certification\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay Achieves ISO 27001:2022 ISMS Certification<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uniswap_Fees_How_Much_Does_it_Cost_to_Swap\"><\/span><strong>Uniswap Fees: How Much Does it Cost to Swap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The total cost of swapping tokens on Uniswap consists of two primary components: network gas fees and liquidity provider fees. While the protocol itself does not charge a traditional trading commission, users must pay both of these costs to complete a transaction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gas_Fees_vs_Protocol_Fees_on_Uniswap\"><\/span><strong>Gas Fees vs. Protocol Fees on Uniswap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Gas fees are paid to the blockchain network to process transactions and vary depending on network congestion. On Ethereum, these fees can fluctuate significantly during periods of high demand. The swap fee paid on each trade is shared between liquidity providers and the protocol. Liquidity providers receive the larger share, while a smaller portion, which&#8217;s the protocol fee, switched on by governance in December 2025, is routed to a mechanism that burns UNI. Different liquidity pools offer different fee tiers, allowing users to balance trading costs with available liquidity. Different liquidity pools offer different fee tiers, allowing users to balance trading costs with available liquidity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uniswap_vs_Other_DEXs_How_Does_It_Compare\"><\/span><strong>Uniswap vs. Other DEXs: How Does It Compare?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Uniswap remains one of the largest decentralised exchanges by trading volume, but several competing DEXs offer alternative features depending on the blockchain ecosystem and user preferences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uniswap_vs_SushiSwap\"><\/span><strong>Uniswap vs. SushiSwap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">SushiSwap was originally developed as a fork of Uniswap but has since introduced additional products such as lending, staking, and yield farming. While both platforms offer automated market maker (AMM) trading, Uniswap generally maintains deeper liquidity and stronger institutional adoption.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uniswap_vs_PancakeSwap\"><\/span><strong>Uniswap vs. PancakeSwap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">PancakeSwap operates primarily on the BNB Chain and is known for its lower transaction fees compared to Ethereum-based DEXs. It also offers gaming, lotteries, NFTs, and staking features beyond token swaps. Uniswap, however, remains the preferred choice for many Ethereum users due to its large liquidity pools, extensive token support, and continuous protocol innovation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Uniswap_Safe_to_Use\"><\/span><strong>Is Uniswap Safe to Use?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most common questions asked by new users exploring Uniswap is whether the platform is safe. As a decentralised exchange, users retain control of their private keys and funds throughout the trading process, reducing custodial risk. However, like all DeFi applications, users should understand the risks associated with smart contracts and fraudulent token listings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read: <a href=\"https:\/\/zebpay.com\/in\/blog\/top-10-cryptos-to-invest-in-2026\" target=\"_blank\" rel=\"noreferrer noopener\">Top 10 Cryptos to Invest in June 2026<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smart_Contract_Risks_and_Audits\"><\/span><strong>Smart Contract Risks and Audits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Uniswap&#8217;s smart contracts have undergone multiple independent security audits and have been extensively battle-tested over the years. Nevertheless, no smart contract can be considered completely risk-free. Bugs, vulnerabilities, or unforeseen exploits remain possible, making proper risk management essential.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Avoid_Scam_Tokens_on_Uniswap\"><\/span><strong>How to Avoid Scam Tokens on Uniswap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Because anyone can create and list a token on a decentralised exchange, users should verify token contract addresses through official project websites or trusted blockchain explorers before making a purchase. Checking liquidity, trading volume, project documentation, and community credibility can also help identify potentially fraudulent tokens. Exercising due diligence remains one of the best ways to trade safely on Uniswap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just like pineapple on pizza,&nbsp;<a href=\"https:\/\/zebpay.com\/in\/blog\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>ZebPay blogs<\/strong><\/a>&nbsp;offer a unique twist on crypto insights. Learn more and start your journey with millions on&nbsp;<a href=\"https:\/\/zebpay.com\/in\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>ZebPay<\/strong><\/a>!<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-vivid-cyan-blue-background-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/onboarding.zebpay.com\/onboarding?returnUrl=https%3A%2F%2Fzebpay.com%2Fapp\" target=\"_blank\" rel=\"noreferrer noopener\">TRADE NOW<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_Uniswap\"><\/span><strong>FAQs on Uniswap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1672655564954\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_Uniswap_and_how_does_it_work\"><\/span><strong>What is Uniswap and how does it work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Uniswap is a decentralised exchange (DEX) built on the Ethereum blockchain that allows users to swap cryptocurrencies directly from their wallets without relying on a central intermediary. Instead of using an order book, Uniswap uses Automated Market Makers (AMMs) and liquidity pools to facilitate trades through smart contracts.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672655697906\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is_Uniswap_safe_to_use\"><\/span><strong>Is Uniswap safe to use?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Uniswap is generally considered one of the most established decentralised exchanges and has undergone multiple smart contract audits. Since users retain control of their funds, there is no custodial risk associated with holding assets on the platform. However, users should still exercise caution, verify token contract addresses, and be aware of risks such as smart contract vulnerabilities and scam tokens.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1672655751056\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_UNI_token_used_for\"><\/span><strong>What is the UNI token used for?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The UNI token is the governance token of the Uniswap protocol. It allows holders to vote on proposals related to protocol upgrades, treasury management, fee structures, and other ecosystem decisions. It also represents community participation in the future development of the protocol. Since December 2025, when governance activated the protocol fee switch, a share of protocol fees is also used to burn UNI, giving the token a value-accrual function in addition to its governance role.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1782474958914\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_impermanent_loss_on_Uniswap\"><\/span><strong>What is impermanent loss on Uniswap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Impermanent loss is the temporary reduction in the value of assets deposited into a liquidity pool compared to simply holding those assets in a wallet. It occurs when the prices of the pooled tokens change relative to one another. The greater the price movement, the higher the potential impermanent loss.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1782474971544\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_Uniswap_V2_and_V3\"><\/span><strong>What is the difference between Uniswap V2 and V3?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The biggest difference is that Uniswap V3 introduced concentrated liquidity, allowing liquidity providers to allocate capital within specific price ranges instead of across the entire price curve. This improves capital efficiency and can increase fee earnings, although it requires more active position management than Uniswap V2.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>As crypto adoption has grown, centralised exchanges have become the primary gateway for buying, selling, and trading digital assets. Their deep liquidity, user-friendly interfaces, and efficient trade execution have made them the preferred choice for millions of users worldwide. However, these platforms are still operated by a central entity that oversees users&#8217; funds, transactions, and [&hellip;]<\/p>\n","protected":false},"author":37,"featured_media":21412,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"_ayudawp_aiss_summary":"","_ayudawp_aiss_summary_provider":"","_ayudawp_aiss_summary_hash":"","footnotes":""},"categories":[14],"tags":[79,16,358,22,570,87],"class_list":["post-21413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-blockchain","tag-crypto","tag-dexs","tag-ethereum","tag-uni","tag-uniswap"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/21413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=21413"}],"version-history":[{"count":4,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/21413\/revisions"}],"predecessor-version":[{"id":41071,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/21413\/revisions\/41071"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/21412"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=21413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=21413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=21413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}