Uniswap founder Hayden Adams stated that the 1% pool fee used by some token launch platforms equates to approximately a 2% bid-ask spread, which serves as their primary revenue extraction method—increasing costs for traders and reducing the efficiency of initial liquidity pools as token supply expands. Hayden Adams believes that Uniswap’s own pools.trade, with its 0.25% fee and automatic fee reinvestment, better supports long-term liquidity, as LPs on launch platforms typically originate from zero-cost locked assets and do not carry price risks that warrant high fee compensation.
Uniswap Founder Criticizes High-Fee Models of Some Token Launch Platforms
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Summary
Uniswap founder Hayden Adams criticized the 1% liquidity pool fee model in token launch news, calling it inefficient and costly. He noted that the model creates a 2% bid-ask spread and increases trading costs. Adams argued that new token listings on such platforms suffer from poor liquidity efficiency as scale grows. He pointed out that liquidity providers often use zero-cost locked assets, making high fees unnecessary. Uniswap’s pools.trade uses a 0.25% fee and automatic reinvestment to support long-term liquidity.
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