Uniswap Introduces 0.15% Swap Fee on Select Tokens
Starting from October 17, Uniswap, the decentralized exchange, will implement a 0.15% swap fee on specific tokens within its web application and wallet. Uniswap founder Hayden Adams announced this development, mentioning that the affected tokens include Ether (ETH), USD Coin (USDC), Wrapped Ether (wETH), Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Angle Protocol’s agEUR, Gemini Dollar (GUSD), Liquidity USD (LUSD), Euro Coin (EUROC), and StraitsX Singapore Dollar (XSGD).
The fee will be deducted from the output token amount in the interface. However, it will not apply to swaps between Ether and Wrapped Ether trading pairs or inter-stablecoin swaps.
Reasoning Behind the Fee
Adams defended the introduction of this fee, stating that it is one of the lowest in the industry. He emphasized that it will enable Uniswap to continue its research, development, and expansion efforts in the crypto and DeFi sectors. Adams highlighted upcoming developments such as an iOS wallet, Android wallet, UniswapX, significant improvements to their web app, Permit2, Uniswap v4 draft codebase, and more.
Uniswap’s Popularity and Revenue
Uniswap is currently one of the most popular decentralized exchanges globally. According to DefiLlama data, it has a total value locked of $3 billion and generates over $271 million in annualized protocol fee revenue. The platform boasts a treasury of $12 million and has secured $176 million from investors since its establishment in 2018.
Hot Take: Uniswap Implements Swap Fee to Support Ongoing Development
Uniswap’s decision to introduce a 0.15% swap fee on select tokens aims to sustain its growth and innovation in the crypto and DeFi space. While some users may find the fee inconvenient, it is relatively low compared to other platforms. The revenue generated from this fee will be utilized for research, development, and expansion efforts, including the introduction of new features and products. As one of the leading decentralized exchanges, Uniswap continues to play a crucial role in increasing access to value and ownership within the cryptocurrency ecosystem.
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