Uniswap – non-custodial swaps on Ethereum and Layer 2 networks.

Uniswap is one of the most well-known decentralized exchanges (DEX) where users trade directly from their own wallets. This page explains how Uniswap works, common risks, and what to double-check before you interact with any pool or token.

Automated market maker (AMM)

Non-custodial – you hold your keys

Ethereum + L2 support

⬇ View key facts Open official app

Type

DEX • AMM pools

Non-custodial

You connect a self-custody wallet (like MetaMask) and sign transactions on-chain. Funds are not deposited into a centralized exchange account.

Reminder

Smart contract risk

On-chain only

You interact with smart contracts directly. Always verify contract addresses and networks before approving or swapping any token.

Uniswap – key facts at a glance

High-level overview of what Uniswap is and how users typically interact with it.

Core idea

AMM model

Uniswap uses liquidity pools instead of order books. Prices are determined by a formula based on the ratio of tokens in the pool, not by centralized matching.

Supported networks

Ethereum + L2

The protocol is live on Ethereum mainnet and several Layer 2 networks. Network fees and speeds depend on which chain you choose.

Access method

Web & wallet

You normally access Uniswap through a compatible wallet + web interface. There are no usernames or passwords – only wallet connections and on-chain approvals.

How Uniswap works in practice

What happens when you swap tokens or provide liquidity on this DEX.

Swapping tokens

On-chain swap

When you swap token A for token B, your wallet sends a transaction to a pool smart contract. The price is defined by the pool’s formula. You pay gas fees plus the pool’s trading fee.

You do not send funds to a centralized company account, but to a protocol contract that holds the pooled liquidity.

Providing liquidity

LP role

Liquidity providers (LPs) deposit pairs of tokens into pools. In return, they earn a share of trading fees, but they also face impermanent loss if token prices move significantly.

Providing liquidity is not a guaranteed income product. Returns depend on volumes, fees, price movement and overall market conditions.

Main benefits and risk factors

Neutral educational summary – advantages and common risks seen with DEX use.

Potential advantages

Pros

Non-custodial: you keep control of your wallet and keys.
No centralized account, KYC depends on the interface you use.
Wide range of tokens, especially on Ethereum and L2 ecosystems.
Fully on-chain – transparent pool balances and transactions.

Key risks to consider

Risks

Smart contract risk – bugs or exploits may lead to loss of funds.
Token risk – anyone can create a token and list it in a pool.
Price impact and slippage for thin or illiquid pools.
Regulatory uncertainty – rules differ by country and may change.

Regions, interfaces and legal considerations

Uniswap is a protocol; front-end access and rules can vary by jurisdiction.

Uniswap itself is a set of smart contracts deployed on public blockchains. However, most users interact with the protocol via web interfaces and wallets provided by third-party teams or organizations.

Depending on your country, some interfaces may restrict access to certain tokens or features, or show additional notices and checks. Local tax, AML and securities laws can also affect how you are allowed to use DeFi services.

Always check: local regulations, your own reporting obligations and whether your jurisdiction places any restrictions on DeFi or DEX usage. If you are unsure, consider independent legal and tax advice.

Practical safety tips before using Uniswap

General educational reminders, not personal advice or a recommendation to use the protocol.

Verify you are on the correct official interface or URL.
Double-check the network (Ethereum mainnet vs L2) in your wallet.
Check token contract addresses from reliable sources, not random links.
Review slippage settings and minimum received amounts before confirming.
Start with small test amounts when interacting with a pool or token for the first time.

Educational only: This Uniswap page on BlockchainGid.com is for general information and education about how a DEX may work. It is not investment, trading, legal or tax advice, and it is not a recommendation to use Uniswap or to buy, sell or hold any asset. Decentralized finance (DeFi) is high-risk. Always do your own research and consider independent professional advice where appropriate.