Uniswap Labs Raises Fee to 0.25% for Mainnet and Layer 2 Transactions

Uniswap Labs, the developer behind the Uniswap protocol, has raised the fees imposed on users for trading via its interface.

The fee has been increased from 0.15% to 0.25% for the majority of swaps executed on the platform.

This adjustment was made on April 10, as shown by blockchain records.

The initial fee applied to a new token was XEN, occurring just hours after Hayden’s announcement regarding the Wells Notice. https://t.co/SHpyMfVefQ pic.twitter.com/pviCxhZ1ij

— Dan Smith (@smyyguy) April 13, 2024

Certain Transactions Are Exempt From Fee

Although the fee increase impacts most swaps, specific transactions are exempt from this fee.

This includes trades involving stablecoins that share the same underlying currency and swaps between Ethereum (ETH) and Wrapped Ether (WETH).

Users also have the ability to avoid the fee by using alternative interfaces to access the Uniswap protocol, instead of depending on the interface created by Uniswap Labs.

However, all other trades executed on the mainnet and supported Layer 2 networks will incur the updated fee, which is set by Uniswap Labs.

It is noteworthy that the fee change occurred shortly after Uniswap founder Hayden Adams revealed that the company had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), suggesting a potential lawsuit.

Reports first emerged last summer regarding the SEC’s investigation into Uniswap.

The SEC is expected to accuse Uniswap Labs of operating as an unlicensed exchange and facilitating unlicensed securities.

In a discussion with Bankless, Adams highlighted that Uniswap Labs operates as a software development firm and has played a key role in the core development of the Uniswap protocol.

“In addition, you know, we also have built an interface to the protocol that we run. But many, many other people have done the same.”

LIVE NOW – Uniswap vs. SEC

Crypto’s OG darling exchange, @Uniswap is under attack after it received an enforcement notice on Wednesday, April 10th, 2024 from none other than Gensler’s anti-crypto SEC

Uniswap’s CEO @haydenzadams joins us on the podcast to share what happened,… pic.twitter.com/Nm7LuLs3cQ

— Bankless (@BanklessHQ) April 12, 2024

Uniswap Rejects Proposal to Distribute Revenue to Token Holders

Last month, the Uniswap community turned down a governance proposal that sought to modify the platform’s fee structure, including provisions for revenue distribution to UNI token holders.

The rejected proposal aimed to empower the decentralized autonomous organization (DAO) to alter Uniswap’s fee mechanism, paving the way for the implementation of a highly anticipated Uniswap “fee-switch.”

This mechanism would have allowed for the distribution of protocol revenue to UNI token holders.

The activation of a fee-switch has been a long-desired objective since Uniswap distributed its UNI token to early users in 2020.

Earlier this year, Uniswap introduced a browser sidebar extension along with a limit order placement feature and additional tools to enhance cryptocurrency transactions.

The Uniswap Extension offers a new method to engage with digital assets directly from a browser sidebar, simplifying the process of swapping digital assets, signing transactions, and trading.

“Let’s be real — most wallet extensions are stuck in the past, with old UX paradigms and clunky onboarding flows,” stated Uniswap on social media. “That’s why we built our own.”

The update also featured a Limit Orders function, enabling users to automate the buying or selling of cryptocurrencies at set prices.

Meanwhile, UNI is currently priced at $7, having decreased by more than 7% over the last day.

The token has fallen by over 35% in the past week and by 48% in the last month, according to data from CoinMarketCap.

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