Uniswap V2

Uniswap V2 receives a B+ risk grade (18/100) from Hindenrank, where lower scores indicate lower risk. 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 While largely superseded by V3 and V4 for active trading, V2 remains one of the most battle-tested smart contracts in DeFi with over $800M in locked liquidity and continues to serve as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.

The key risks identified for Uniswap V2 are: (1) Sandwich bots front-run your trades, costing you more than the displayed price impact (2) Providing liquidity often loses money due to impermanent loss exceeding fee earnings on volatile pairs (3) The V2 TWAP oracle is outdated and can be manipulated in low-liquidity pools

Uniswap V2 scores 18/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 5/20, Oracle Surface: 1/10, Documentation Gaps: 1/10, Track Record: 2/15, Scale Exposure: 3/10, Regulatory Risk: 1/10, Vitality Risk: 5/10. The highest risk area is Vitality Risk at 5/10.

Among 111 rated DEX protocols on Hindenrank, Uniswap V2 ranks #3 by safety (lowest risk score = safest). Its 18/100 risk score and B+ grade place it among the safer DEX protocols.

Uniswap V2 scores 2/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.