# Uniswap - a trustless, decentralized exchange for Ether and ERC20 tokens
# Uniswap - a decentralized exchange for ERC20 tokens
Uniswap exchange uses a "Market Maker" mechanism, where liquidity providers store a reserve of ETH and ERC20 tokens within an Ethereum smart contract. An exchange rate is set between the tokens and ETH based on the relative availibility of each token. Arbitrage ensures that the rate will be the same as on other exchanges. Buyers who send Token 1 to the smart contract will receive back Token 2 at the current rate. A small fee is paid from the buyer to the liquidity providers to incentive participation.
Read the Whitepaper: https://hackmd.io/C-DvwDSfSxuh-Gd4WKE_ig
A full writeup with math and whatnot will be written soon. Until then, here is some more info on Market Makers:
Itlookslikeyouaren't connected. <b>Please switch to the Rinkeby testnet.</b>
</p>
</div>
)
} else if (props.web3Store.metamaskLocked) {
return (
<div className="grey-bg connection border pa2">
<p>Welcome! Uniswap is a decentralized exhange platform for ERC20 Tokens. <a onClick={() => {props.toggleAbout()}} className="f-a" >How it works ↘</a><br /><br />
Looks like you aren'tconnected.<b>PleaseunlockMetamasktocontinue.</b></p>
It looks like you aren'tconnected.<b>PleaseunlockMetamasktocontinue.</b></p>
</div>
)
}elseif(props.web3Store.interaction==="error1"){
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@@ -38,51 +40,35 @@ function ConnectionHelper(props) {
<aclassName="f-a"onClick={()=>props.onCloseHelper()}>I've added the token</a>
</div>
)
} else if (!props.swapAdded && props.exchange.outputToken.value === "SWAP") {
return (
<div className="grey-bg connection border pa2">
<p>Welcome! Uniswap is a decentralized exhange platform for ERC20 Tokens. <a onClick={() => {props.toggleAbout()}} className="f-a" >How it works</a>.<br /><br />
You’ll need to add the SWAP tokens to Metamask. <a target="_blank" rel="noopener noreferrer" href="http://metamask.consensyssupport.happyfox.com/kb/article/4-managing-tokens">Here’s a step by step guide.</a><br />
Add UNI with <a href="">0x8B2A87F8243f23C33fb97E23a21Ae8EDB3b71AcA</a>.</p>