What is Uniswap and why the EXM/USDT pool on v4 matters for EXMO Coin

Learn how Uniswap works, how v2, v3 and v4 differ and how you can swap or add liquidity.

Uniswap is the most popular decentralized exchange (DEX) in crypto. It lets you swap tokens directly from wallet to wallet — no order books, no middlemen. The EXM/USDT pool on Uniswap v4 opens a brand-new DeFi frontier for EXMO Coin.

Uniswap in plain English

Uniswap runs without an order book; instead, it uses an Automated Market Maker (AMM). Picture a liquidity pool: a reserve of two tokens—say, EXM and USDT—held in balance. When someone buys EXM with USDT, the pool automatically adjusts the ratio and price via a simple on-chain formula. The entire process happens without permissions or centralized services.

AMM and liquidity

Traditional exchanges rely on manually placed buy and sell orders. An AMM replaces those books with code. Trades happen directly against the pool, not against another trader.

Anyone can become a Liquidity Provider (LP) by depositing an equal value of two tokens and basically “leasing” their assets. In return, the smart contract pays you a share of trading fees proportional to your stake. For example, if you provide 10% of the pool, you earn 10% of every fee.

This model unlocked a truly borderless, permissionless market for millions of users.

How Uniswap has evolved

The platform has experienced several stages of its development:

▪️v2 kept things simple: 50/50 pools, a battle-tested architecture—but liquidity spread too widely, limiting returns.

▪️v3 introduced concentrated liquidity. LPs choose a price range, earn higher yields, but must watch the range or earnings drop.

▪️v4 takes another leap. It introduces a brand-new Singleton architecture, which means all liquidity pools live inside a single smart contract, rather than separate ones for each trading pair like before. This drastically simplifies the swapping process between tokens on the platform — fewer steps, lower gas fees and overall better cost-efficiency for users.

Another major innovation in v4 is the introduction of hooks — custom code that allows developers to attach individual rules or automated actions to specific pools. For example, you could add a small donation fee to every swap, block certain wallet addresses, or create dynamic liquidity rules that change based on market conditions.

That flexibility is why EXM/USDT launched on v4: cheaper, smarter and better for the community.

Version	Key feature	Why it’s better	What to know
v2	Classic 50/50 pool	Simple, time-tested	Less capital-efficient
v3	Concentrated liquidity	Higher yield potential	Needs active monitoring
v4	Hooks + Singleton	One pool address → lower gas; custom logic inside pools	Still brand-new tech

How to use the EXM/USDT pool

To swap EXM and USDT, all you need is a Web3 wallet (e.g., MetaMask or Rabby), some ETH for gas and the Uniswap link. Once connected, you can swap tokens in just a few clicks — no signup required.

Note: At the moment, Uniswap has restricted access to its services for users in certain countries. We recommend using a VPN service to access the platform without interruption if you experience any issues with the functionality.

To add liquidity, deposit equal values of EXM and USDT — say, $50 in each. In return, you will get LP tokens representing your share of the pool. You will then earn a portion of trading fees every time someone swaps in the pool.

What is impermanent loss and why it matters

Adding liquidity means locking in two tokens of equal value. But prices change constantly. That’s where impermanent loss comes in.

Let’s say you added 100 USDT and $100 worth of EXM. If EXM rises or falls, the AMM automatically rebalances your pool share, leaving you with more of one token and less of the other. When you withdraw, your dollar value might be lower than if you’d just held the tokens separately.

That’s impermanent loss. It only becomes real when you withdraw. If prices return to where they were, the loss disappears. But there are no guarantees.

To reduce risk, you can hedge. For example, if EXM price rises and you added liquidity, open a short on EXMO Margin. That can offset your impermanent loss.

Remember:

▪️Impermanent loss is a normal part of DeFi pools.
▪️You still earn trading fees, which may cover or exceed your loss.
▪️Best to start with a small amount. Learn the process and adjust from there.

What this means for EXMO Coin

On-chain activity is more than just marketing. It lays the foundation for real DeFi growth. Since we support all meaningful steps forward for EXMO Coin, this became an excellent activity in the development of the EXM token.

Also, joining the on-chain world allows us to launch interactive campaigns — including Galxe quests, engagement rewards, NFT badges and exclusive airdrops for top participants.

Final Thoughts

Uniswap is not scary or complicated. It’s a real way to support EXMO Coin in the DeFi space — and earn while doing so. The EXM/USDT pool on Uniswap v4 is live. Try swapping or adding liquidity now.

Try your first swap and join the DeFi community today.

Go to Uniswap