Uniswap V2 Crypto Exchange Review: Still Worth Using in 2025?

Uniswap V2 isn’t the newest kid on the block anymore. Launched in May 2020, it’s been overshadowed by Uniswap V3 and other modern DEXes. But here’s the thing-Uniswap V2 is still running. Thousands of people use it every day. And if you’re trading low-volume tokens, dealing with gas fees, or just want a simple, battle-tested platform, it might be exactly what you need.

What Uniswap V2 Actually Does

Uniswap V2 is a decentralized exchange built on Ethereum. That means no central company controls it. No KYC. No sign-up. You connect your wallet-like MetaMask or Trust Wallet-and swap tokens directly from your account. The whole thing runs on smart contracts. No middleman. No one holding your crypto. If you send ETH or USDC to Uniswap V2, it goes straight into a liquidity pool and gets swapped for whatever token you want.

Before V2, Uniswap V1 only let you trade ETH for other tokens. That was limiting. V2 changed that. It allowed direct trading between any two ERC-20 tokens-like USDC to DAI, or SHIB to LINK. That opened the door for thousands of new tokens that couldn’t get listed on centralized exchanges. By 2023, over 42,000 token pairs were live on V2. Most new DeFi projects still launch their first liquidity pool here.

How It Works: The Math Behind the Magic

Uniswap V2 uses something called an Automated Market Maker (AMM). Instead of order books like Binance or Coinbase, it uses pools of tokens. For every pair-say, ETH/USDC-there’s a pool with both tokens locked in a smart contract.

The system follows a simple rule: x * y = k. If you have 100 ETH and 200,000 USDC in the pool, then k = 20,000,000. When you swap 10 ETH for USDC, the protocol recalculates the new USDC amount so that the product stays the same. The price changes based on supply and demand. More people buying ETH? The price goes up. Simple.

There’s a 0.3% fee on every trade. That fee gets added to the pool and distributed to liquidity providers-people who deposit tokens into these pools. If you put in $1,000 worth of ETH and USDC, you earn a share of all the trading fees from that pool.

What Made V2 a Game-Changer

Compared to V1, V2 had three big upgrades:

1. Direct ERC-20 to ERC-20 swaps-no more needing ETH as a bridge. You could trade DAI for WBTC directly.
2. Flash swaps-you can borrow tokens without putting up collateral, as long as you return them in the same transaction. This lets traders do complex arbitrage or collateral swaps in one go.
3. On-chain price oracle-V2 tracks the average price of tokens over the last 288 blocks (about 1 hour). This helps DeFi apps like lending protocols get reliable prices without relying on external feeds.

These features made V2 the go-to for early DeFi developers. By late 2020, it handled over 80% of all DEX volume. Even today, it’s the most trusted platform for new tokens. Why? Because its code hasn’t changed since 2020-and it’s never been hacked.

Why People Still Use It in 2025

Uniswap V3 came out in May 2021 and promised 4,000x better capital efficiency. So why isn’t everyone on V3?

Because V3 is complicated. It lets you set custom price ranges for your liquidity. That’s powerful-but if you set it wrong, your tokens get stuck outside the active range and stop earning fees. For new users, it’s a minefield.

V2? It’s dead simple. You add liquidity to a pair. You get fees. You withdraw when you want. No ranges. No math. No risk of accidentally locking your funds.

Real-world example: In July 2024, the ApeChain token launched. 73% of its initial liquidity went into V2 pools, not V3. Why? Because the team wanted maximum exposure. V2’s simplicity meant more users could easily add liquidity without learning new mechanics.

Low-liquidity tokens (< $500,000 TVL) still thrive on V2. V3’s concentrated liquidity doesn’t work well here-there’s not enough volume to keep prices stable in narrow ranges. V2’s broad, flat pool keeps those tokens tradable.

And let’s not forget reliability. Over 95% of V2’s original smart contracts have run unchanged since 2020. No bugs. No exploits. A 2023 security audit gave it an 8.7/10 score-higher than most newer protocols.

The Downsides: Gas, Slippage, and Risk

Uniswap V2 isn’t perfect. Here’s where it hurts:

• High gas fees-During peak times, a single swap can cost $10-$15. In December 2023, one user paid $42 in gas to swap $100 worth of tokens. Ethereum’s L1 is expensive, and V2 isn’t optimized for efficiency.
• Slippage on low-volume tokens-If a token has little liquidity, your trade can move the price hard. During the March 2023 SVB collapse, 22% of V2 pools saw slippage over 5%. That means you got less than you expected.
• No protection against scams-V2 doesn’t check if a token is a honeypot. If you swap into a malicious contract, your funds are gone. One Reddit user lost $1,200 in October 2024 by trading a token that locked withdrawals. The interface didn’t warn him.
• Capital inefficiency-Liquidity providers only use 15-20% of their deposited funds at any time. That means you’re tying up a lot of capital for small returns.

These aren’t deal-breakers-but they’re real. If you’re trading stablecoins like USDC/USDT, you’ll barely notice slippage. But if you’re buying a new meme coin with $200,000 in liquidity? You’re playing Russian roulette.

How to Use Uniswap V2 (Step-by-Step)

Getting started is straightforward:

1. Get a wallet. MetaMask is the most popular. Install the browser extension or mobile app.
2. Buy some ETH. You’ll need it for gas fees.
3. Go to app.uniswap.org and click "Connect Wallet".
4. Click "Swap". Enter the token you want to sell and the one you want to buy.
5. Set your slippage tolerance. For stablecoins, use 0.5%. For volatile tokens, use 1-3%.
6. Click "Swap". Confirm two transactions: one to approve the token, one to execute the swap.

To add liquidity:

1. Click "Pool" then "Add Liquidity".
2. Select two tokens (e.g., ETH and DAI).
3. Enter the amount of one token. The other will auto-fill.
4. Click "Supply". Confirm two transactions.

That’s it. No complex settings. No price ranges. Just swap or add liquidity and walk away.

Uniswap V2 vs. V3 vs. Other DEXes

Here’s how V2 stacks up:

PancakeSwap on BSC is cheaper and faster, but it’s on a different blockchain. If you’re only using Ethereum, V2 is still the most reliable option for small tokens.

Who Should Use Uniswap V2 Today?

Here’s who benefits:

• New DeFi users-Simple interface, no confusing settings.
• Traders of low-volume tokens-V3 doesn’t work well here.
• Liquidity providers who want hands-off exposure-No need to manage price ranges.
• Users in emerging markets-31% of DeFi transactions in Southeast Asia happen on V2 because it’s easier to understand.

Here’s who should avoid it:

• High-frequency traders-Gas fees add up fast.
• Those trading large amounts-Slippage will eat your profits.
• Anyone trading unknown tokens-No safety net. Do your own research.

The Future of Uniswap V2

Uniswap Labs isn’t building new features for V2. The focus is on V3 and the upcoming V4. But that doesn’t mean V2 is dying.

In January 2025, the Uniswap treasury approved $2.5 million to keep V2 running through 2027. That’s not a small amount. It’s a signal: V2 still matters.

Ethereum’s core developers say V2 is part of the "DeFi scaffolding"-the foundational layer that keeps the ecosystem alive. Even if volume drops to 5-7% by 2026, it’ll still be there for the long tail of tokens that V3 ignores.

The biggest threat? If Ethereum L1 gas fees stay above $5 for months, V2 could become too expensive for small traders. But with Layer 2s like Arbitrum and Optimism growing, many users are already moving their V2 trades there via bridges.

For now, V2 isn’t obsolete. It’s legacy. And legacy doesn’t mean broken-it means proven.

Final Verdict: Should You Use It?

Yes-if you know what you’re doing.

Uniswap V2 is the most secure, reliable, and straightforward DEX for trading lesser-known tokens on Ethereum. It’s not the fastest. It’s not the cheapest. But it’s the most trusted. If you’re swapping ETH for a new DeFi token, or adding liquidity to a pair with under $1 million in volume, V2 is still your best bet.

Just remember: never trade a token you don’t understand. Never ignore slippage. And always check the token’s contract on Etherscan before you swap.

It’s not glamorous. But in crypto, sometimes the old tools are the ones that keep you alive.