Uniswap Founder Rebuts Claims v4 Fees Reduce LP Earnings

Uniswap founder Hayden Adams pushed back against criticism that Uniswap's newly activated v4 protocol fees reduce liquidity providers' earnings.

In a recent X post, Adams argued that critics misunderstood the new fees and their impact on LPs.

Adams disputed claims that the 5-basis-point protocol fee would take 25% of LP profits, saying it's actually around 14% of total swap fees in a 30-basis-point pool.

This response came after Uniswap governance approved the activation of protocol fees for selected v4 pools across multiple blockchains. According to Adams, these fees are additive rather than deducted from existing LP fees.

Uniswap is currently the world's largest decentralized exchange by total value locked, with about $3.06 billion secured on the protocol.