Odaily Planet News: Uniswap founder Hayden Adams and Aerodrome CEO Alexander had a dispute over the LP fee revenue model. Hayden Adams posted on X, stating that Alexander's claim that his platform's "revenue" is five times that of Uniswap is somewhat misleading. This is because Aerodrome charges 100% of LP fees and returns them to LPs through token issuance or liquidity incentives. This method makes the revenue figures appear large, but they do not represent sustainable fees. It not only creates a revenue illusion but is also meaningless. If Uniswap were to charge 100% of LP fees and return them in token form, its reported "fee revenue" could reach $1 billion, but the design of Uniswap's protocol fees is different. A portion of the swap fees belongs to the protocol, while most are directly returned to LPs. The goal is long-term sustainability, not inflated surface figures.
Uniswap Founder Criticizes Aerodrome's Revenue Model for Creating an Illusion
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Summary
Uniswap founder Hayden Adams has criticized Aerodrome CEO Alexander regarding the platform's liquidity provider (LP) fee model. Adams stated that Aerodrome's claim of generating five times the "revenue" of Uniswap is misleading, as it collects 100% of LP fees and redistributes them through token issuance or incentives, creating a false impression of revenue. He pointed out that if Uniswap used the same method, its reported "fee revenue" could reach $1 billion, but Uniswap prioritizes long-term sustainability. Meanwhile, news about new token listings and token launches continues to attract attention, but Adams' comments highlight concerns about how platforms report their financial performance.
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