Uniswap Founder: v4 Protocol Fees Are Stacked, LP Earnings Not Reduced

Odaily Odaily News: Uniswap founder Hayden Adams responded on the X platform to the controversy sparked by the v4 fee switch, clarifying that the claim "LP fees are reduced" is a misunderstanding. Protocol fees are stacked on top of existing fees, not deducted from them. LPs still earn 30 basis points per trade — they earn exactly 30 basis points. Addressing the argument that "the protocol takes 25% of LP profits," he stated that on a 30 basis point pool, the protocol fee is 5 basis points, accounting for approximately 14% of total transaction fees, while the earnings originally obtained by LPs are not reduced. Hayden Adams also pointed out that centralized exchanges charge 100 to 200 basis points per trade, making Uniswap's 5 basis point fee on a 30 basis point tier 20 to 40 times cheaper. He also criticized certain fork projects that charge 100% transaction fees but "compensate" LPs using uneven inflation set by token voting.