© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023
M. Ottina et al.Automated Market Makershttps://doi.org/10.1007/978-1-4842-8616-6_2

2. Uniswap v2

Miguel Ottina1  , Peter Johannes Steffensen2 and Jesper Kristensen3
(1)
Rivadavia, Argentina
(2)
Aarhus, Denmark
(3)
New York, NY, USA
 

Uniswap v2 is a decentralized exchange based on a system of smart contracts on the Ethereum blockchain and other networks (such as 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, ...

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