Uniswap Founder Rebuts FUD Surrounding v4 Upgrade Fees

Hayden Adams, founder of Uniswap, has defended the v4 upgrade against what he calls 'misleading' speculations and 'FUD' (fear, uncertainty, and doubt) in the DeFi community. He claims that rumors about a reduction in Liquidity Pool fees are false.

Adams explained that protocol fees on Uniswap v4 are additive, not subtractive. This means that LPs earning 30bp per swap still earn the same amount. The founder also dismissed the notion that the protocol takes 25% of LP profits, calling it 'Made-up Math.'

According to Adams, Uniswap collects a 5bp protocol fee on a 30bp pool, which represents approximately 14% of total swap fees and 0% of what LPs were already earning. He compared this to the charges on centralized exchanges (CEX), noting that CEXs charge 100-200bp per swap.

Adams' defense comes as Uniswap v4 faces backlash from critics who point to its highly controversial activation fees, security concerns surrounding hooks, fracturing liquidity across customized pools, and corporate licensing constraints.