Uniswap is a decentralized protocol making it possible for you, along with everyone else in the world, to swap tokens directly from your self-hosted crypto wallet. What is Uniswap? The 1-minute explanation In fact, the on-chain AMM format is the basis for nearly all the innovation found in decentralized finance protocols like Compound, Aave, and Curve. The latter resulted in the development of protocols like 0x, while the former gave us the AMM (automated money maker) format utilized by Bancor, and eventually, Uniswap. The exchange's shoddy performance was the source of many complaints - but looking back, EtherDelta set the scene for significant advancements in the space.Īfter EtherDelta, decentralized exchange architecture further branched in two directions - on-chain and off-chain.
While EtherDelta had a variety of problems stemming from the exchange's off-chain architecture, it contributed self-custody to trading. There have been numerous attempts at the DEX format since 2014, but none really stuck until EtherDelta came along.
Self-custody simply refers to the fact that it's you, not an exchange or third party, who stores your crypto. Decentralized exchanges solve the security issues dogging crypto trading by enabling p2p trading between self-custody crypto wallets.
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