
Uniswap V2 is the second major version of the Uniswap protocol and the foundation of AMM-based decentralized trading. It introduced ERC-20 to ERC-20 swaps, improved liquidity pool mechanics, and established the model that most DEXs still follow today.
Using a constant-product AMM model, Uniswap V2 allows users to trade directly against liquidity pools rather than counterparties. Anyone can provide liquidity to earn fees, while swaps execute instantly and trustlessly on Ethereum.