Hayden Adams said critics misunderstood Uniswap’s newly approved v4 protocol fees, rejecting claims the change reduces liquidity providers’ earnings.
Uniswap founder Hayden Adams pushed back against criticism of Uniswap’s newly activated v4 protocol fees, arguing that claims they reduce liquidity providers’ earnings are based on incorrect assumptions.
In an X post on Tuesday, Adams said recent criticism surrounding the protocol fee activation amounted to “FUD and misunderstanding.”
Adams also disputed claims that the protocol was taking 25% of LP profits. Using a 30-basis-point pool as an example, he said a 5-basis-point protocol fee represents about 14% of total swap fees, not a reduction in LP earnings.
The comments came after Uniswap governance approved the activation of protocol fees for selected v4 pools across multiple blockchains. Adams rejected claims that liquidity providers would earn lower fees, 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, according to DefiLlama.
Related: Spark migrates $150M in stablecoin to Uniswap to advance shared liquidity
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