Uniswap (UNI) is associated with a decentralized exchange protocol. Instead of a traditional order book, Uniswap-style trading uses liquidity pools and automated market maker rules.
What UNI is
UNI is the governance token connected to the Uniswap ecosystem. Governance tokens can be used for voting or protocol-related decisions depending on the system rules.
Why Uniswap matters
Uniswap helped make decentralized token swapping mainstream in DeFi. It allowed many tokens to trade without each one needing a centralized exchange listing first.
Users still need to watch slippage, fake tokens, gas fees, liquidity quality, and smart contract risk when using decentralized exchanges.