Uniswap v4 fees leave LP rates unchanged, Adams says

Uniswap founder Hayden Adams rejected claims on July 28 that the decentralized exchange’s newly activated v4 protocol fees reduce liquidity providers’ existing earnings. Summary Uniswap governance activated v4 protocol fees across seven chains after 46.6 million UNI supported proposal. Liquidity providers retain existing pool fees while traders pay a separate protocol charge, Adams said. A 30-basis-point pool adds five basis points, making the protocol fee 14% of total fees. He said critics had misunderstood how the charge is calculated after governance approved the change. The response followed the execution of Proposal 100 on July 27. The vote received 46.6 million UNI in support and 1.27 million against, clearing the 40 million UNI quorum. It activated the fee-controller system on Ethereum, Arbitrum, Base, BNB Chain, Polygon, OP Mainnet and Robinhood Chain. Uniswap v4 fees are additive under the new design Adams used a pool charging traders 30 basis points as his example. Under the approved curve, LPs continue earning 30 basis points, while the protocol adds five basis points. Traders therefore pay a combined fee near 35 basis points. The protocol’s five-basis-point portion equa...