Uniswap: What It Is, How It Works, and What You Need to Know

When you trade crypto without a middleman, you’re likely using Uniswap, a decentralized exchange built on Ethereum that lets users swap tokens directly from their wallets. Also known as a protocol for automated liquidity, it changed how people trade crypto by removing exchanges like Binance or Coinbase from the equation. Before Uniswap, getting access to new tokens meant trusting a centralized platform that could freeze your funds or vanish overnight. Now, anyone with an Ethereum wallet can trade almost any ERC-20 token—no sign-up, no KYC, no approval needed.

Uniswap doesn’t use order books like traditional exchanges. Instead, it relies on liquidity pools, smart contracts that hold pairs of tokens, like ETH and CRV, so trades happen automatically. When you swap one token for another, the price shifts based on supply and demand inside the pool. That’s why tokens like CRV, the Curve DAO token used for governance and staking, or FLIP, Chainflip’s cross-chain swap token, can be traded instantly on Uniswap—no waiting for a buyer or seller to match your order.

But Uniswap isn’t just about trading. It’s also where people earn yield by adding liquidity. You can lock up ETH and a token like MIST or UR into a pool, and earn fees from every trade that happens in that pool. That’s why so many DeFi projects launch their tokens on Uniswap first—it’s the easiest way to get initial trading volume. But that also means it’s flooded with low-quality tokens. You’ll find tokens like MOON, BULEI, or BABYKEKIUS here too—meme coins with no team, no utility, and no real demand. They’re listed because anyone can create an ERC-20 token and add it to Uniswap with a few clicks.

That’s the double-edged sword: Uniswap gives you freedom, but it also puts the burden of due diligence on you. There’s no vetting. No warnings. If you buy a token with zero liquidity, you might not be able to sell it later. That’s why tools like AlertLend track Uniswap pools in real time—alerting you to sudden liquidity drops, rug pulls, or suspicious trading patterns before you get trapped.

Uniswap’s success has sparked copycats—like Plenty Exchange on Tezos or DeGate using zkRollup tech—but none match its scale or liquidity. It’s still the go-to place for early-stage tokens, yield farmers, and speculators. But understanding how it works, what risks come with it, and which tokens are worth your attention is the difference between making a smart trade and losing your money.

Below, you’ll find real breakdowns of tokens traded on Uniswap—from the legit ones like CRV and FLIP to the risky ones like MOON and BABYKEKIUS. We’ll show you what to look for, what to avoid, and how to spot trouble before it’s too late.