Uniswap

Uniswap (UNI) is the governance token of Uniswap, the largest automated market maker (AMM) decentralized exchange on Ethereum. UNI does not power the trading engine directly; instead it gives holders a vote over how the protocol evolves, from treasury spending to fee switches and future upgrades. Understanding Uniswap means separating the exchange itself from the token that governs it.

What is Uniswap?

Uniswap pioneered the AMM design that now underpins much of decentralized finance. Rather than matching buyers and sellers through an order book, it lets users swap tokens against pooled liquidity supplied by other users. Liquidity providers earn a share of trading fees, and anyone can list a token by creating a pool. This permissionless design made Uniswap a cornerstone of DeFi and yield farming across the Ethereum ecosystem.

How does Uniswap work?

At the heart of Uniswap is the constant-product formula, which uses the ratio of two pooled assets to quote prices automatically. Traders pay a small fee that accrues to liquidity providers, while arbitrageurs keep pool prices aligned with the broader market. The UNI token sits on top of this machinery as an ERC-20 asset secured by Ethereum's proof-of-stake consensus. Holders can submit and vote on governance proposals, either directly or by delegating their voting power.

Uniswap tokenomics and supply

UNI launched with a genesis supply of 1,000,000,000 tokens, distributed to past users, team members, investors and the community treasury. Roughly 621 million are in circulation today. The supply is not strictly fixed forever, as governance can approve a modest perpetual inflation rate, but the headline number most people reference is the one billion cap.

• Genesis and reference max supply: 1,000,000,000 UNI
• Circulating supply: about 621 million UNI
• All-time high near $45; all-time low around $1

What is Uniswap used for?

The token's core use is governance: shaping fees, grants, integrations and treasury allocation. Beyond that, UNI is widely held as exposure to DeFi's most-used exchange. Traders use the Uniswap protocol itself to swap thousands of tokens, provide liquidity, and access decentralized markets without a custodian.

Where to buy Uniswap

UNI is available on nearly every major platform; our best crypto exchanges ranking can help you weigh liquidity and fees. You can also acquire UNI directly on the Uniswap protocol using a self-custody wallet. For storing and voting with your tokens, see our best crypto wallets guide, which covers Ethereum-compatible wallets that connect to DeFi apps.

Is Uniswap a good investment?

As a governance token, UNI's value is tied to the protocol's usage and to whether holders ultimately capture protocol revenue, a long-debated question. Uniswap's dominance in DEX volume is a genuine strength, but competition, regulatory scrutiny of DeFi, and general crypto volatility are real risks. Consider UNI a bet on decentralized exchange adoption, not a guaranteed yield, and never invest more than you can afford to lose. This is not financial advice.