Uniswap founder Hayden Adams stated that automatic compounding liquidity technology has been implemented on pools.trade. This mechanism uses smart contracts to set rules allowing anyone to claim uncollected fees, provided they increase their liquidity position by 0.2%. When the value of uncollected fees exceeds 0.2% of the liquidity position, searchers add 0.2% more liquidity and claim the fees, achieving automatic compounding. Hayden Adams noted that the solution is based on Uniswap’s token jar mechanism, and the team plans to incorporate it into Uniswap’s LP roadmap.
Uniswap Founder Proposes Auto-Compounding Liquidity Mechanism for LPs
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Summary
Uniswap founder Hayden Adams shared on-chain news about a potential auto-compounding liquidity mechanism inspired by pools.trade. The system uses smart contracts to allow anyone to claim uncollected fees by adding 0.2% liquidity. When fees exceed 0.2%, searchers automatically add liquidity and collect the fees. The design builds upon Uniswap’s token jar mechanism, and new token listings may benefit from this compounding model.
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