It doesn't use centralized exchanges or market makers. It supports quick and fast liquidity. It works well with liquidity providers, granting their crypto tokens to establish liquidity pools.
The Uniswap platform is a blockchain protocol that uses automated market makers (AMMs) and liquidity pools to facilitate peer-to-peer trading.
Liquidity providers add tokens to Uniswap pools and are rewarded with a fee proportional to their share of the pool. contains_3 Uniswap 101 How Uniswap Works The Constant Product.
Uniswap pioneered the Automated Market Maker model, in which users supply Ethereum tokens to
Uniswap “liquidity pools” and algorithms set market prices (as opposed to order books, which match bids and asks on a centralized exchange like Coinbase) based on supply and demand