The majority of people in crypto are mostly interested in buying or selling cryptocurrencies. Centralized exchanges enable these services with very low fees but firstly users have to do KYC to use their services. Assets owned by users are not in their custody and they have no control over it, exchanges have custody over their assets, and in the event of a hack of exchange, users’ assets can be stolen by hackers. In the initial years of crypto, users had to rely on these centralized exchanges only, but now users have another option that is decentralized exchanges. Decentralized exchanges such as Uniswap provide solutions to all of these problems faced by users. Users of Uniswap have full custody of their assets and anybody from anywhere in the world can use the exchange without doing any KYC. What is Uniswap? Uniswap is a peer-to-peer decentralized crypto exchange, where users can buy or sell cryptocurrencies. The protocol is developed in a way such that its smart contracts can’t be changed by any developer, it is censorship-resistant, and users get custody of their own assets and it works without any trusted intermediaries. Generally in public markets, exchanges use a central limit order book, where buyers and sellers set their orders on certain price levels that are filled as demand and supply shifts. Uniswap does not follow this order book approach, it uses an Automated Market Maker (AMM) also known as Constant Function Mark...
