Uniswap Founder Proposes Auto-Compounding LP Positions in Roadmap

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Uniswap founder Hayden shared a project announcement outlining plans to introduce auto-compounding LP positions. The design, modeled after pools.trade, allows liquidity to be deposited into a smart contract. Users can claim uncollected fees in exchange for a 0.2% boost to their position, encouraging searchers to add liquidity when fees exceed 0.2% of the position’s value. The feature aims to enable automatic fee compounding over time. The project announcement highlights a key step in Uniswap’s ongoing development.

Odaily Planet Daily reports: Uniswap founder Hayden posted on X that the technical design for auto-compounding liquidity is his personal contribution to pools.trade. The mechanism works as follows: liquidity positions are deposited into a smart contract with the rule that anyone can claim all accrued but uncollected fees from the position, provided they increase the size of the liquidity position by 0.2%. As a result, fees accumulate over time, and when their value exceeds 0.2% of the liquidity, searchers are naturally incentivized to add 0.2% more liquidity and claim the fees. This mechanism is based on Uniswap’s token jar and can also be applied to auto-compound standard Uniswap LP positions, so the feature will be added to the roadmap.

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