Created in 2018 by Hayden Adams, Uniswap is a decentralized and trustless financial infrastructure protocol. UNI introduced automated market making (AMM) on Ethereum. The protocol improves trading efficiency while keeping trading open to token holders.
The protocol remains one of the prominent AMMs mitigating liquidity-associated issues while lowering risks and costs for the various stakeholders. Its latest version, Uniswap V3, offers enhanced efficiency and infrastructure, as well as execution.
The maximum UNI supply is capped at one billion and 60% of it is allocated to Uniswap community members. The protocol is governed by a global community of UNI token holders and is witnessing a growing network of DeFi applications (300+).
Correlation shows how closely two variables move in relation to one another. In investing, this relationship is expressed numerically and ranges between -1.0 and 1.0.
A correlation of 1 is a perfect positive correlation. In this case, as one security moves, the other security moves in the same direction by the same percentage.
A correlation of -1 is a perfect negative correlation. As one security moves, the other moves in the opposite direction.
A zero correlation implies no relationship between the two securities.