Uniswap Founder Slams Criticism Over V4 Fees

Uniswap's founder Hayden Adams pushed back against criticism of the protocol's v4 fees, saying claims they reduce liquidity providers' earnings are based on 'FUD and misunderstanding.'

In a recent X post, Adams disputed claims that the protocol takes 25% of LP profits, using a 30-basis-point pool as an example to show that a 5-basis-point protocol fee represents about 14% of total swap fees.

Uniswap governance approved the activation of protocol fees for selected v4 pools across multiple blockchains, sparking criticism from some users who claimed it would lead to lower earnings for liquidity providers.

Adams rejected this claim, saying protocol fees are additive rather than deducted from existing LP fees. Uniswap is the world's largest decentralized exchange by total value locked, with about $3.06 billion secured on the protocol.