Uniswap is a decentralized exchange (DEX) that lets you swap tokens and provide liquidity to earn trading fees, all without a centralized intermediary.

How do I earn on Uniswap?

By adding liquidity (LP) to pools. With concentrated liquidity (v3+), you select a price range; you earn higher fees if trades occur within your range.

What are the main risks?

Impermanent loss if token prices diverge, smart contract risks, and low-fee periods when volumes drop. Start small and diversify.

Uniswap – Swap, Provide Liquidity & Earn Fees (2025)

Trade tokens permissionlessly and earn fees as a liquidity provider. Understand concentrated ranges, IL risk, and best practices for safer LPing.

Open Uniswap App

What Is Uniswap?

Uniswap is a leading AMM-based DEX. It enables token swaps and liquidity provision using smart contracts. With concentrated liquidity, LPs choose price ranges to deploy capital more efficiently and potentially earn higher fee APRs.

Key Features

Permissionless Swaps: trade thousands of tokens directly from your wallet.
Concentrated Liquidity: pick price ranges to boost capital efficiency.
Fee Tiers: choose pools (e.g., 0.01% / 0.05% / 0.3%) suited to asset volatility.
Multi-Chain: deploy on several EVM networks with varying fees and liquidity.
Composability: integrate LP positions with DeFi strategies and dashboards.

How to Get Started (2025)

Connect a Web3 wallet (hardware preferred for larger balances).
For swaps: pick tokens, review slippage, and confirm the transaction.
For LP: select a pair, fee tier, and set a price range (wider = safer, lower APR).
Monitor volume, fees earned, and rebalance range as markets move.

New to DeFi? Read Yield Farming Explained and Passive Strategies Compared.

Pros & Cons

Pros: permissionless access, deep liquidity, powerful LP tools, on-chain transparency.
Cons: impermanent loss, active range management, gas costs on L1, smart contract risk.

Who Is Uniswap For?

Suitable for users who want noncustodial swaps or who are comfortable managing LP positions and IL risk. Beginners can start with swaps and stable pairs.

Final Thoughts

Uniswap remains a cornerstone of DeFi in 2025. Start small, prefer stable pairs at first, and expand to volatile assets only after you master IL and range rebalancing. Prefer a simpler yield with lower touch? Try Curve stablecoin pools or Pendle tokenized yields.