Uniswap
Currently the world’s leading decentralised exchange (DEX), Uniswap launched in 2018 on the Ethereum blockchain. Unlike centralised exchanges such as Binance or Coinbase, Uniswap runs entirely on smart contracts, enabling users to trade directly from their wallets without intermediaries. It pioneered the automated market maker (AMM) model, which replaced traditional order books with liquidity pools.
Today, Uniswap is a cornerstone of decentralised finance (DeFi), but as a DEX, it brings both freedom and risk. We decided to create an article on Uniswap, not for any recommendations for using the service, just the opposite, to highlight the risk new and intermediate crypto users need to be aware of.
Uniswap at a glance
| TRADING FEES | CRYPTO CURRENCIES |
AUSTRAC | STAKING | AUD ONBOARDING |
TRUST RATING |
|---|---|---|---|---|---|
|
0.05%–1.0%(varies by pool) |
1,000+ | ❌ | ❌ | ❌ |  |
What is it?
Uniswap was created by Hayden Adams, inspired by a post from Ethereum co-founder Vitalik Buterin about automated market making. Instead of matching buyers and sellers, Uniswap allows users to pool tokens into smart contracts. Traders swap against these pools, with prices determined by an algorithm.
The exchange quickly became the dominant DEX on Ethereum and later expanded to other chains such as Polygon, Arbitrum, and Optimism. Its native token, UNI, gives holders governance rights over protocol upgrades and treasury spending.
Uniswap does not operate like a company-controlled exchange, it is governed by its community through decentralised decision-making. This makes it unique among the platforms we’ve reviewed – there is no customer support desk, no central operator, and no AUSTRAC registration, since it runs as code on a blockchain.
For new users to crypto, this is a hard concept to wrap your head around, exchanging coins with a third party via a smart contract with no exchange fees or broker other than the blockchain gas fee for the swap.
Security
Uniswap’s security rests on the Ethereum blockchain and the robustness of its smart contracts.
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Open-source code: Its contracts are publicly available and can be traced.
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Non-custodial model: Users always control their own wallets.
- No KYC: Anyone with an Ethereum wallet can trade.
Uniswap itself has not been hacked in the way centralised exchanges have. However, its open design creates other risks, such as scam tokens being listed without review, and users approving malicious contracts.
The strength of Uniswap is that users never hand over custody of funds. The weakness is that mistakes fall entirely on the user, with no help desk to call if something goes wrong.
Trust Rating
Uniswap values self-custody and permissionless access—but users aren't always kind in return. On Trustpilot the platform scores 1.1 out of 5, based on about 900 reviews, placing it near the bottom of rated crypto services.
There’s no record of a higher rating in the past – reviews from 2023 were already overwhelmingly negative, citing delisted tokens, insufficient decentralization, and no support safety net. The complaints haven’t eased since – 2024 and early-2025 feedback still centres on failed swaps, app bugs, and lack of recourse if something goes wrong. Positive reviews highlight the freedom of non-custodial trading and the absence of KYC barriers.
The Trust Takeaway: Uniswap empowers autonomy, but it comes with no customer support safety net. That might be fine if you know what you're doing, but for anything less than confident DeFi users, this may feel like driving without a seatbelt.
Can the Exchange Operate in Australia?
Uniswap is not AUSTRAC-registered since it’s a software code running on the Ethereum blockchain. Users trade directly from their wallets, with no intermediary third party.
Uniswap is accessible like any DEX or exchange, but since it runs on smart contracts, there is no compliance framework or customer protection beyond what you manage yourself. This exchange should only be used if you are an experienced user with crypto and understand margins, spreads and the swap fees involved.
Staking
Uniswap does not offer staking in the same way as centralised exchanges. Instead, users can become liquidity providers by depositing token pairs into pools. In return, they earn a share of swap fees. This is a complex environment we recommend to stay out of unless you have a high level of crypto experience and knowledge.
Supported Assets
Uniswap supports thousands of ERC-20 tokens on Ethereum and assets on Layer 2s like the coins Arbitrum (ticker: ARB) and Optimism (ticker: OP). The breadth is unmatched by centralised exchanges, but it comes with higher exposure to scam tokens and coins without liquidity.
Fee Structure
Uniswap charges simple fees on trades:
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Swap fees: 0.05%–1.0% depending on the pool.
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Liquidity provider rewards: Fees go to liquidity providers, not Uniswap itself.
- Gas fees: Users also pay Ethereum gas fees, which can be unpredictable.
Fees are transparent but less predictable than centralised exchanges, since network costs fluctuate, and Ethereum has a track record for high gas fee fluctuations during network congestion.
Unique Features
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Automated market maker (AMM): Pioneered pool-based trading.
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Non-custodial: Users keep control of their assets, direct swap to your wallet.
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UNI governance token: Community decides on upgrades and treasury.
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Cross-chain expansion: Available on Ethereum, Polygon, Arbitrum, and more.
- Permissionless listings: Anyone can list a token, without gatekeepers.
Risks
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Scam tokens: Anyone can create and list a token, making rug pulls common.
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Phishing sites: Fake versions of Uniswap trap careless users and are unfortunately common.
- User error: Mistakes in approving contracts or losing seed phrases are final.
Liquidity / Ability to Back Assets
Uniswap is consistently among the largest DEXs by volume, often trading billions per day. Liquidity is strong for major tokens but can be thin for smaller assets. There are no reserves or central backing – liquidity depends entirely on the willingness of providers.
UI/UX and Customer Experience
Uniswap’s web app is simple, clean, and directly connected to user wallets. However, the simplicity hides complexity: slippage settings, gas fees, and token approvals can confuse new users.
Customer service does not exist, only community forums and documentation. This is both the beauty and the challenge of a decentralised protocol.
The Buzz
Uniswap is the largest DEX by volume, showing the world that trading can happen without middlemen. Its Trustpilot score of 1.1/5 reflects the reality of DeFi, where freedom comes with greater user responsibility, and mistakes for new users are unforgiving.
For Australians, Uniswap is an open door to thousands of tokens and a chance to participate in DeFi on your own terms. Just remember, there is no safety net, and you could easily end up swapping your coins for less than their market value. If your crypto knowledge is new or intermediate, we recommend staying away, as there are plenty of other trading platforms with less risk.
Even advanced users need to be cautious on Uniswap as errors can be costly. As always, keep your wallet secure, never risk more than you are willing to lose. Because DEXs and DeFi are frequent targets for scammers, we recommend reading our security materials before diving into any DEX trades, as always to be crypto safe.
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Stay safe. Stay smart. Be Crypto Safe.