October 18, 2023

Uniswap Introduces New Fee Structure: Imposes 0.15% Charges on Select Tokens

Uniswap has recently rolled out a 0.15% transaction fee on specific tokens, potentially generating daily fees in the range of $388,000 to $444,000. A substantial portion, approximately 35% to 40%, of Uniswap's total transaction volume takes place on the front-end interface.

As reported by the prominent Chinese blockchain-focused journalist, Colin Wu, the daily fees accrued from Uniswap V3 transactions could fall within the range of $388,000 to $444,000. Wu also highlighted that a significant chunk of Uniswap's decentralized exchange activity occurs through its front-end interface.

Earlier, Wu had shared information about Uniswap's decision to impose a 0.15% swap fee on specific tokens. This fee structure applies to a defined set of tokens, including ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD.

Uniswap has provided clarity on this matter through a formal announcement on its help center. The platform explained that these tokens are subject to fees solely when traded via Uniswap Labs interfaces on the mainnet and supported Layer-2 scaling solutions. Uniswap underlined that these fees are relevant only for swaps where both the input and output tokens are subject to fees.

It's important to note that these recently introduced fees by Uniswap are distinct from the Uniswap Protocol fee switch, which is determined by the decisions of Uniswap's governance community.

The rationale behind Uniswap's latest fee structure remains unclear to many users as of the time of this report. Some individuals responding to Wu's initial announcement raised questions about the reasoning behind the 0.15% fee and sought information on who was responsible for selecting the tokens to which this fee is applied.

The move diverges from Uniswap Labs' traditional stance favoring entirely free systems. However, CEO Hayden Adams concluded, “I want to make sure we’re creating sustainable systems to power this work.”

As of the past 24 hours, the trading volume on Ethereum Uniswap V3 has reached more than $800 million, with major stablecoin pairs excluded, making up a substantial $700 million of this total.

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