Uniswap Founder Labels 2% Spread as Primary Rug Pull Tool

Hayden Adams identifies the 2% spread equivalent of 1% LP fees as a primary rug pull mechanism, citing higher trader costs and liquidity inefficiency compared to pools.trade.

Woofun AI reports that Uniswap founder Hayden Adams addressed community inquiries regarding launchpad fee policies, characterizing the 1% liquidity pool fee employed by certain token issuance platforms as equivalent to a 2% bid-ask spread. He identified this fee structure as the primary revenue extraction method for these platforms, noting that it increases trading costs and potentially causes efficiency losses in initial liquidity pools as tokens scale. Adams contrasted this with Uniswap's pools.trade, which utilizes a 0.25% fee with auto-compounding to support long-term liquidity. He further observed that liquidity providers on issuance platforms typically supply assets from zero-cost locked positions, thereby avoiding the price risks that would otherwise necessitate high fee compensation.