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Uniswap founder disputes claims v4 fees cut liquidity providers earnings
Hayden Adams said critics are assuming protocol fees subtract from existing LP fees, arguing they are additive and noting that a 5-basis-point fee on a 30-basis-point pool is about 14% of total swap fees.
Uniswap founder Hayden Adams pushed back on criticism over the decentralized exchange’s newly approved v4 protocol fees, rejecting the claim that the change reduces liquidity providers’ earnings, according to Cointelegraph. Adams disputed assertions that Uniswap’s v4 is taking 25% of liquidity provider profits, and instead said a 5-basis-point protocol fee within a 30-basis-point pool would amount to about 14% of total swap fees. He also argued that protocol fees are additive rather than deducted from existing LP fees. The comments followed Uniswap governance approval to activate protocol fees for selected v4 pools across multiple blockchains. Cointelegraph also noted Uniswap is the largest decentralized exchange by total value locked, with about $3.06 billion secured on the protocol, according to DefiLlama.