Uniswap Founder: V4 Protocol Fees Are Stacked, LP Earnings Not Reduced

Odaily Odaily News: Uniswap founder Hayden Adams responded on X platform to the controversy surrounding the v4 fee switch, clarifying that the claim of "LP fees being reduced" is a misunderstanding. Protocol fees are stacked on top of, not deducted from, existing fees. LPs still earn 30 basis points per trade. Addressing the claim that "the protocol takes 25% of LP profits," he explained that for a 30 basis point pool, the protocol fee is 5 basis points, accounting for approximately 14% of total transaction fees, while the original earnings for LPs remain unchanged. Hayden Adams further pointed out that centralized exchanges charge 100 to 200 basis points per trade, and Uniswap's 5 basis point fee on a 30 basis point tier is 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.