According to ME News, on July 29 (UTC+8), Uniswap founder Hayden Adams responded to the controversy surrounding the v4 fee switch, clarifying that the claim “LP fees were reduced” is a misunderstanding: protocol fees are additive, not deductive; LPs still earn 30 basis points per trade. Regarding the assertion that “the protocol takes 25% of LP profits,” he noted that on a 30-basis-point pool, the protocol fee is 5 basis points, accounting for approximately 14% of total trading fees, while LPs’ fee earnings remain unchanged. Hayden Adams also pointed out that centralized exchanges charge 100 to 200 basis points per trade, making Uniswap’s 5-basis-point fee on a 30-basis-point pool 20 to 40 times cheaper. (Source: BlockBeats)
Uniswap Founder Clarifies v4 Fee Switch Controversy
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Summary
Uniswap founder Hayden Adams responded to the controversy surrounding the v4 protocol update fees, clarifying that LP fees are not reduced. He stated that protocol fees are additive, with LPs still earning 30 basis points. The protocol takes 5 basis points from 30-basis-point pools, or approximately 14% of fees. Adams compared this to CEX fees of 100–200 basis points, calling it 20–40 times cheaper. This crypto news emerges amid ongoing discussions about decentralized exchange fee models.
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