uniswap
What is uniswap and how does it work
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The Uniswap Protocol takes a different approach, using an Automatic Market Maker (AMM) to replace the traditional order book method with a liquidity pool of two assets, where the price is determined by an AMM. These pooled tokens are provided by liquidity providers (LPs) who receive an LP token in exchange for providing liquidity. WEBThe defining idea of Uniswap v3 is concentrated liquidity: liquidity that is allocated within a custom price range. In earlier versions, liquidity was distributed uniformly along the price curve between 0 and infinity.