Is Uniswap V2 Safe?
Risk Grade: B+ (17/100)
Uniswap V2 is rated as moderate risk — some novel mechanisms, generally well-understood.
Uniswap V2 is among the safest DeFi protocols with over 5 years of battle-tested code and no direct exploits. The December 2025 UNIfication governance vote activated the protocol fee switch and burned 100M UNI tokens (~$596M), improving value accrual to a B grade. Best suited for long-tail pairs and users who value simplicity and composability over capital efficiency.
Uniswap V2 is the original decentralized exchange that pioneered automated market making in DeFi. It uses a simple constant-product (x*y=k) formula to enable permissionless token swaps without order books. While largely superseded by V3 and V4 for active trading, V2 remains one of the most battle-tested smart contracts in DeFi with over $800M in locked liquidity and continues to serve as the backbone for many long-tail token pairs.
TVL
$866M
Mechanisms
6
Interactions
4
Value Grade
B
Key Risks for Uniswap V2 Users
Sandwich bots front-run your trades, costing you more than the displayed price impact
Providing liquidity often loses money due to impermanent loss exceeding fee earnings on volatile pairs
The V2 TWAP oracle is outdated and can be manipulated in low-liquidity pools
Top Risk Factors
- •Sandwich attacks exploit constant-product AMM with 90% of blocks vulnerable to front-running
- •On-chain TWAP oracle is cheaply manipulable in low-liquidity pairs, affecting downstream protocols
- •Impermanent loss can exceed fee revenue for volatile pairs, causing silent LP capital erosion
Risk Score Breakdown
Uniswap V2's highest risk area is Vitality Risk (4/10). Here's how each dimension contributes to the overall 17/100 score:
Read the Full Uniswap V2 Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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