Uniswap, one of the leading decentralized exchanges (DEXs) in the crypto space, has announced a new fee structure for its web app and wallet. Starting today October 17, 2023, Uniswap will charge a flat fee of 0.15% on swaps involving certain tokens, such as ETH, USDC, WETH, USDT, DAI, WBTC, and others.
I work in crypto because of the immense positive impact I believe it can have on the world, removing gatekeepers and increasing access to value and ownership.
I’m proud of the ways @Uniswap Labs has contributed to that effort and want to make sure we’re creating sustainable…
— hayden.eth 🦄 (@haydenzadams) October 16, 2023
The fee will only apply to trades made through the Uniswap Labs interfaces on the mainnet and supported L2s, and will not affect swaps from one stablecoin to another or wraps between ETH and WETH.
Uniswap Introduces a Strange New Feature
The new fee is intended to sustainably fund the operations of Uniswap Labs, the development team behind the Uniswap protocol. According to Uniswap founder Hayden Adams, the fee will help support the ongoing innovation and maintenance of the platform.
He also clarified that the fee is separate from the Uniswap Protocol fee switch, which is voted on by Uniswap governance and has not been activated yet.
The introduction of the fee marks a significant change for Uniswap, which has been known for its no-fee structure and permissionless nature. Some users have expressed their concerns and criticisms over the fee, questioning its rationale, amount, and selection of tokens. Others have pointed out that the fee may drive users to other DEXs or frontends that do not charge fees or offer lower rates.
However, some analysts have argued that the fee is reasonable and competitive compared to other platforms, such as centralized exchanges (CeFi) or other decentralized finance (DeFi) protocols. They also noted that Uniswap still offers many advantages over its rivals, such as high liquidity, fast execution, and a wide range of tokens.
Moreover, they suggested that the fee may benefit the Uniswap ecosystem in the long run by providing more resources and incentives for its development.
Uniswap is one of the most popular and influential DEXs in the crypto market, with over $2.7 billion in total value locked and over $700 million in daily trading volume. The platform allows users to swap any ERC-20 token without intermediaries or custodians. Uniswap launched its third version (V3) in May 2023, introducing new features such as concentrated liquidity and multiple fee tiers.