Uniswap Founder Clarifies v4 Fee Structure, Asserting LP Earnings Remain Unchanged

Hayden Adams clarifies that Uniswap v4 protocol fees are additive, not deductive. He states LPs retain full 30 bps earnings, refuting claims of profit reduction and contrasting costs with centralized exchanges.

Woofun AI reports that Uniswap founder Hayden Adams addressed the controversy surrounding the v4 fee switch on X, clarifying that protocol fees are additive rather than deductive. He stated that liquidity providers continue to earn 30 basis points per transaction, refuting claims that the protocol takes 25% of LP profits. Adams noted that in a 30 basis point pool, the 5 basis point protocol fee accounts for approximately 14% of total transaction fees, meaning LP earnings have not decreased. He compared this to centralized exchanges charging 100 to 200 basis points, positioning Uniswap's fee as 20 to 40 times cheaper.

Additionally, he criticized forked projects for charging 100% transaction fees while using uneven inflation mechanisms to compensate liquidity providers.