Uniswap Founder Defends v4 Protocol Fees Against Misunderstood Criticism

Uniswap's v4 protocol fees have been met with criticism from some members of the community, but founder Hayden Adams pushed back against the claims on Tuesday. He argued that the critics misunderstood how the new fees work and that they do not reduce liquidity providers' earnings.

In a post on X, Adams disputed claims that the protocol fee activation would take 25% of LP profits. Using an example of a 30-basis-point pool, he explained that the 5-basis-point protocol fee represents about 14% of total swap fees, not a reduction in LP earnings.

Adams also clarified that the new fees are additive rather than deducted from existing LP fees. This means that liquidity providers will still earn their usual fees, but with an additional charge for using the v4 protocol.