Glossary
What is Uniswap V2?
Uniswap V2 is the constant-product AMM design where liquidity is spread evenly across all prices and providers receive fungible LP tokens.
V2 pools are simple and battle-tested: deposit two tokens in equal value, get LP tokens, earn a flat fee share on every swap. Liquidity is distributed across the entire price curve from zero to infinity.
Its simplicity makes V2 the default for launching a new token's first pool. Many Monad DEXs run V2-style or Solidly-style forks of this design.
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Related terms
- Uniswap V3Uniswap V3 introduced concentrated liquidity, letting providers commit capital to a specific price range and represent each position as an NFT.
- AMMAn automated market maker (AMM) is the algorithm a DEX pool uses to price trades from its token reserves, instead of matching individual buy and sell orders.
- LP tokenAn LP (liquidity-provider) token is a receipt a DEX gives you when you deposit into a liquidity pool; it represents your share of that pool.
- Liquidity poolA liquidity pool is a smart contract holding two tokens that traders swap against; its balances set the price via an automated market maker formula.