Uniswap Founder Rejects Claims v4 Fees Cut LP Earnings
Hayden Adams rejected claims v4 protocol fees cut liquidity providers’ earnings, calling the criticism ‘FUD and misunderstanding.’ He noted a 5-basis-point fee on a 30-basis-point pool equals about 14% of swap fees.
Uniswap founder Hayden Adams pushed back on criticism of the protocol’s newly activated v4 fees, describing the reaction as ‘FUD and misunderstanding.’
He wrote on X that a 5-basis-point protocol fee in a pool charging 30 basis points for swaps amounts to roughly 14% of total swap fees and is additive rather than deducted from liquidity providers’ payouts.
The activation followed a governance vote that approved protocol fees for selected v4 pools across multiple blockchains.
Some critics had claimed the protocol would take 25% of liquidity provider revenue; Adams rejected that calculation and noted the 5-basis-point example refers to the protocol’s share of the total swap fee under that specific fee structure.
Uniswap v4 introduces more granular fee controls and pool settings, allowing governance to enable fees for individual pools and chains instead of applying a platform-wide change.
The v4 protocol fees apply only to pools chosen by governance; decisions about which pools will carry fees are made by the Uniswap community.
Uniswap remains the largest decentralized exchange by total value locked, with about $3.06 billion secured on the protocol. Changes to fee structures can affect trader behavior and incentives for liquidity providers.
Adams provided the numerical example to clarify how fees are allocated and to address confusion among liquidity providers and other stakeholders.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
