Uniswap Imposes 0.15% Swap Fee on Web App and Wallet for Select Tokens

Uniswap Labs is rolling out a new transaction fee on its decentralized exchange. As announced on its website and wallet, the firm will impose a 0.15% swap fee, effective from tomorrow. This fee specifically targets the following tokens: ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD. However, it's noteworthy that swaps involving stablecoins, as well as swaps between ETH and WETH, will remain exempt from this new fee. For the 0.15% fee to be applicable, both tokens in the swap must be from the aforementioned list.

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Historically, Uniswap’s standard fee model charged a 0.30% fee for trades, which is distributed to the liquidity providers of the pool where the trade occurred. This incentivizes users to supply liquidity. Additionally, there's a dormant protocol fee mechanism that, if activated, would allocate 0.05% out of the 0.30% trading fee to the platform or UNI token holders, leaving 0.25% for liquidity providers. This new 0.15% swap fee, in tandem with existing charges, could take the total fee up to 0.45% for certain trades on listed tokens.

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This strategic move is distinct from the potential activation of the company's protocol fee switch, which would be decided by UNI governance token holders. Founder Hayden Adams has conveyed the company's objective to establish a sustainable and transparent business model that bolsters the spread of cryptographic and DeFi solutions developed by Uniswap.

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Contrary to its effect on UNI holders, who have shown eagerness for the system fee switch, the new fee initiative is predicted to add value to Uniswap's equity. Legal expert Gabriel Shapiro opined that the UNI token, because of its absence of intrinsic system fees, might draw the attention of SEC regulations. Conversely, Farcaster co-founder Dan Romero views this update as a strategic move towards sustainability benefiting the entire Uniswap ecosystem.

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Despite the ongoing bear market, Uniswap Labs has been proactive in launching new products. Their recent releases encompass the iOS and Android wallets, Permit2, UniswapX, significant upgrades to their web app, and the draft codebase of Uniswap v4.

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Currently ranked fourth as a DeFi protocol, Uniswap boasts over $3B in total value locked, peaking over $10B in April 2021 post the Uniswap V3 release.