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What is Uniswap V1 ?

Uniswap V1 is a DEX protocol built on the AMM algorithm and liquidity pools. Users can deposit arbitrary ERC-20 token and a certain amount of ETH into the Uniswap V1 pool to create a trading pair contract and the corresponding liquidity pool for everyone to trade. The initial token exchange rate is determined by the ratio of number of these two assets in the liquidity pool. Once there's a spread between the Uniswap V1 and other exchanges, an arbitrage space will be created for all users, which helps Uniswap V1 tend to track the relative market price of its assets. The price slippage will decrease when the asset balance in the liquidity pool increases and vice versa. Users can provide liquidity by depositing pair assets into the Uniswap V1 pool proportionally to the current exchange rate and become auto market makers. Traders pay 0.3% fee on trades, which goes to liquidity providers eventually. Since the exchange behavior itself will affect the pair assets balance, liquidity providers might suffer impermanent losses when there're wild swings in assets prices. Latest [public audit report](https://github.com/ConsenSys/Uniswap-audit-report-2018-12) is provided by ConsenSys Diligence. **⚠️ [WARNING:](https://twitter.com/haydenzadams/status/1263840243909824518?s=20)** Uniswap V1 does NOT have an official telegram group! Uniswap V1 only has an official Discord group!

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