To contextualize this: A big problem with current cryptocurrency exchanges is that they're centralized. In order to trade on them, you have to take coins out o

To contextualize this: A big problem with current cryptocurrency exchanges is that they're centralized. In order to trade on them, you have to take coins out of your own wallet and send them to the exchange's wallet, which you don't have control over. In the event that the exchange decides to take the money and run, you have no recourse. The Ethereum blockchain's smart contract system has enabled the rise of decentralized exchanges, like Uniswap. What this means is that trades between users' wallets are mediated by the contract's code, never requiring you to relinquish control of your coins. Unlike the traditional order book of most exchanges (centralized or decentralized), Uniswap has developed a way of trading centered around the concept of liquidity pools (see this [1] post for more information). Traders have wondered if this system provides comparable or better pricing compared to conventional order book exchanges, and this paper makes the case that it works well as a pricing system. [1] https://defiprime.com/uniswap-liquidity-pools https://defiprime.com/uniswap-liquidity-pools