Uniswap vs. Centralized Exchanges
Providing liquidity on Uniswap differs fundamentally from earning on a centralized exchange (CEX). On a CEX, you are lending your assets to the exchange, which carries counterparty risk. On Uniswap, you retain custody of your assets in a smart contract, embodying the true « be your own bank » ethos of DeFi. You earn from organic market activity rather than from a centralized entity. The decentralized nature of Uniswap Liquidity Pools guide offers a trustless and transparent earning model.
