Uniswap founder rejects claims v4 fees reduce LP earnings

cointelegraphPublished on 2026-07-29Last updated on 2026-07-29

Abstract

Uniswap founder Hayden Adams refuted criticism that the newly activated v4 protocol fees reduce liquidity provider (LP) earnings, labeling the claims as "FUD and misunderstanding." He clarified that a 5-basis-point protocol fee in a typical 30-basis-point pool represents about 14% of total swap fees, not a direct cut from LP profits. Adams emphasized that these fees are additive and not deducted from existing LP earnings. The comments followed Uniswap governance's approval to activate protocol fees for selected v4 pools across multiple blockchains. Uniswap remains the largest decentralized exchange by total value locked, with approximately $3.06 billion secured.

Uniswap founder Hayden Adams pushed back against criticism of Uniswap’s newly activated v4 protocol fees, arguing that claims they reduce liquidity providers’ earnings are based on incorrect assumptions.

In an X post on Tuesday, Adams said recent criticism surrounding the protocol fee activation amounted to “FUD and misunderstanding.”

Adams also disputed claims that the protocol was taking 25% of LP profits. Using a 30-basis-point pool as an example, he said a 5-basis-point protocol fee represents about 14% of total swap fees, not a reduction in LP earnings.

The comments came after Uniswap governance approved the activation of protocol fees for selected v4 pools across multiple blockchains. Adams rejected claims that liquidity providers would earn lower fees, saying protocol fees are additive rather than deducted from existing LP fees.

Uniswap is the world’s largest decentralized exchange by total value locked, with about $3.06 billion secured on the protocol, according to DefiLlama.

Related: Spark migrates $150M in stablecoin to Uniswap to advance shared liquidity

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Related Questions

QWhat is the main argument of Uniswap founder Hayden Adams regarding the v4 protocol fees?

AHayden Adams argues that claims the v4 protocol fees reduce liquidity providers' earnings are based on incorrect assumptions and misunderstanding. He states that the fees are additive, not deducted from existing LP fees.

QHow did Hayden Adams describe the recent criticism of the v4 protocol fee activation?

AHe described the recent criticism as 'FUD and misunderstanding' in an X post on Tuesday.

QWhat example did Adams use to clarify the percentage of the protocol fee, and what was his conclusion?

AHe used a 30-basis-point pool as an example. He stated that a 5-basis-point protocol fee represents about 14% of total swap fees, not a reduction in LP earnings.

QWhat action by Uniswap governance preceded Adams' comments, and what was its scope?

AUniswap governance approved the activation of protocol fees for selected v4 pools across multiple blockchains, which preceded Adams' comments.

QAccording to DefiLlama, what is Uniswap's position among decentralized exchanges by total value locked (TVL)?

AAccording to DefiLlama, Uniswap is the world's largest decentralized exchange by total value locked (TVL), with about $3.06 billion secured on the protocol.

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