Uniswap
The largest decentralized exchange by trading volume, built on Ethereum. Uniswap pioneered the AMM model, allowing users to trade any ERC-20 token directly from their wallet using liquidity pools rather than a traditional order book.
Why It Matters
Uniswap is a decentralized exchange that allows users to trade cryptocurrencies directly without intermediaries. This matters for decentralization and empowerment within finance, providing users with greater control over their trades.
Example
On Uniswap, if you want to exchange Ethereum for a lesser-known token, you simply connect your wallet and execute the trade without needing to register with a central authority. This accessibility encourages more people to participate.
Beginner Context
For newcomers, Uniswap offers a fun and straightforward introduction to decentralized exchanges. It shows how blockchain technology can revolutionize trading experiences and challenge traditional finance systems.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Rekt
Crypto slang for suffering a severe financial loss on a trade or investment — derived from the word "wrecked." Someone who is rekt has typically lost a large portion of their portfolio, often due to leverage or a rug pull.
Slippage
The difference between the expected price of a trade and the actual execution price, often caused by low liquidity or high volatility.
Exchange
A platform where users can buy, sell, and trade cryptocurrencies. Exchanges can be centralized (CEX) or decentralized (DEX).
CeFi
Centralized Finance. Financial services that operate through centralized intermediaries such as exchanges or lending platforms, as opposed to decentralized protocols.
Impermanent Loss
The temporary loss experienced by liquidity providers when the price ratio of deposited assets changes compared to when they were deposited.