Uniswap v2

Abstract

Uniswap v2 is a decentralized exchange based on a system of smart contracts on the Ethereum blockchain and other networks (Polygon, Optimism, Arbitrum). It is formed by liquidity pools that enable automated market making; that is, they enable traders to buy and sell assets against the protocol without the need for a third party. Each Uniswap v2 liquidity pool consists of reserves of two ERC-20 tokens deposited by liquidity providers, who benefit from the fees that the protocol charges to traders. The collected fees are shared proportionally among all liquidity providers.