Uniswap is an Automated Market Maker (AMM). It allows users to swap any ERC20 token, using the liquidity pool instead of the order book.

Uniswap is a 100% decentralised and permissionless protocol, operating on the following formula: x*y=k (called “constant product”).   

TLDR: V3 update combines both decentralised market maker model with centralised limit order books.   

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