Uniswap founder responds to the v4 fee switch controversy: protocol fees are additive, and LP returns are not reduced

PANews July 29 news, Uniswap founder Hayden Adams posted on X to address the controversy caused by the v4 fee switch, clarifying that the notion of “LP fees being reduced” is a misunderstanding. Protocol fees are added rather than deducted: for each trade, LPs still earn 30 basis points and thus still earn 30 basis points. Regarding the claim that “the protocol takes 25% of LP profits,” he said that in a 30 basis point pool, the protocol fee is 5 basis points, accounting for about 14% of total trading fees, and the amount LPs originally earned was not reduced by a single cent. Hayden Adams also pointed out that centralized exchanges charge 100 to 200 basis points per trade, and that Uniswap’s 5 basis point fee at the 30 basis point tier is cheaper by 20 to 40 times. He also criticized some fork projects—charging 100% of trading fees, yet using uneven inflation set via token voting to “compensate” LPs.