Crypto:
31684
Bitcoin:
$62.780
% 0.10
BTC Dominance:
%56.7
% 0.16
Market Cap:
$2.20 T
% 0.36
Fear & Greed:
49 / 100
Bitcoin:
$ 62.780
BTC Dominance:
% 56.7
Market Cap:
$2.20 T

Uniswap Fees Increase to 0.25% for Most Swaps on Mainnet and Layer 2

Uniswap (Uni)

Uniswap Labs, the team behind the popular decentralized exchange protocol, has increased its trading fees from 0.15% to 0.25% for most swaps conducted through its user interface.

The fee hike, implemented on April 10th according to blockchain data, applies to the majority of trades but excludes specific transactions.

Certain Swaps Remain Exempt

Swaps involving stablecoins pegged to the same fiat currency and trades between Ethereum (ETH) and Wrapped Ether (WETH) are not subject to the fee increase.

Users can also avoid the fee entirely by interacting with the Uniswap protocol through alternative interfaces, bypassing the Uniswap Labs interface altogether.

However, all other swaps executed on the Uniswap mainnet and supported Layer 2 networks will now incur the new 0.25% fee set by Uniswap Labs.

Potential SEC Lawsuit Looms

The timing of the fee increase coincides with reports that Uniswap Labs received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), potentially foreshadowing a lawsuit.

News of an SEC investigation into Uniswap first surfaced last summer, with the SEC likely focusing on whether Uniswap Labs functions as an unregistered exchange or facilitates unlicensed securities trading.

Uniswap founder Hayden Adams, in a recent interview, maintained that Uniswap Labs primarily operates as a software development company and has played a central role in the Uniswap protocol’s core development.

Uniswap Community Rejects Fee-Sharing Proposal

Last month, the Uniswap community voted against a governance proposal seeking to modify the platform’s fee structure, including the distribution of revenue to UNI token holders.

The rejected proposal aimed to empower the Uniswap DAO (decentralized autonomous organization) to adjust the fee mechanism, paving the way for the highly anticipated “fee-switch” feature.

READ:  What is PlayDapp (PLA) ? What Does It Do?

This mechanism, if implemented, would have enabled the distribution of protocol fees to UNI token holders, a feature sought after since the 2020 UNI token distribution event.

Uniswap Extension Streamlines Trading

Earlier this year, Uniswap launched a browser sidebar extension offering limit order functionality and other tools to enhance user experience.

The Uniswap Extension facilitates crypto transactions directly within a browser sidebar, simplifying asset swaps, transaction signing, and trading activities.

“Most wallet extensions are outdated,” Uniswap stated on social media, highlighting the motivation behind the extension’s development. “That’s why we built our own.”

The update also introduced a limit order feature, allowing users to automate cryptocurrency purchases or sales at predetermined prices.

UNI Token Price Slumps

The UNI token is currently trading around $7, reflecting a decline of more than 7% in the past 24 hours. CoinMarketCap data reveals a steeper drop of over 35% in the past week and a significant 48% decrease over the past month.

Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *