$200M Uniswap Fees: What You're Getting Wrong

Uniswap's impressive $209 million in fees over the last 30 days may have investors thinking it's a goldmine for UNI holders. However, this isn't entirely accurate.

The economics of Uniswap are more nuanced than they initially seem. Most of the fees generated by the protocol ultimately go to liquidity providers, rather than directly benefiting UNI holders.

Breaking down the numbers, we see that $16.1 million in revenue is captured by the protocol over 30 days. Meanwhile, UNI holders reap a smaller reward of $15.9 million through the protocol's buyback/burn mechanisms.