Uniswap Labs, the brains behind the Uniswap protocol, has upped the fees imposed on users for trading via its interface.
Previously set at 0.15%, the fee has now been bumped up to 0.25% for the majority of swaps carried out on the platform.
This adjustment took effect on April 10, as evidenced by blockchain records.
Certain Transactions Are Exempt From Fee
While the fee hike impacts most swaps, specific transactions enjoy exemption from the increased fee.
This exemption encompasses trades involving stablecoins pegged to the same underlying currency and swaps between Ethereum (ETH) and Wrapped Ether (WETH).
Users can also dodge the fee by opting for alternative interfaces to access the Uniswap protocol instead of solely relying on the one developed by Uniswap Labs.
Nevertheless, all other trades executed on the mainnet and supported Layer 2 networks will adhere to the revised fee, set by Uniswap Labs.
The fee adjustment notably followed shortly after Uniswap founder Hayden Adams revealed that the company had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), hinting at a potential lawsuit.
Reports initially surfaced about the SEC’s investigation into Uniswap last summer.
Presumably, the SEC will accuse Uniswap Labs of operating as an unlicensed exchange and facilitating unregistered securities trading.
In an interview with Bankless, Adams stressed that Uniswap Labs primarily serves as a software development entity and has been deeply involved in the core development of the Uniswap protocol.
He mentioned, “In addition, you know, we also have built an interface to the protocol that we run. But many, many other people have done the same.”
Uniswap Rejects Proposal to Distribute Revenue to Token Holders
In the previous month, the Uniswap community dismissed a governance proposal seeking to implement alterations to the platform’s fee structure, which included the prospect of distributing revenue to UNI token holders.
The proposal, which failed to gain approval, aimed to empower the decentralized autonomous organization (DAO) with the ability to adjust Uniswap’s fee mechanism, thereby paving the way for the implementation of a highly anticipated Uniswap “fee-switch.”
This switch would have facilitated the distribution of protocol revenue to UNI token holders.
The activation of such a fee-switch has long been an objective since Uniswap distributed its UNI token to early adopters in 2020.
Earlier this year, Uniswap unveiled a browser sidebar extension, along with a limit order placement function and various other tools, all geared towards enhancing cryptocurrency transactions.
The Uniswap Extension introduces a fresh approach to engaging with digital assets directly from a browser sidebar, simplifying the process of swapping digital assets, signing transactions, and conducting trades.
“Let’s be real — most wallet extensions are stuck in the past, with outdated UX paradigms and cumbersome onboarding flows,” Uniswap shared on social media. “That’s why we built our own.”
The update also brought forth a Limit Orders feature, enabling users to automate the buying or selling of cryptocurrencies at predetermined prices.
Meanwhile, UNI is currently priced at $7, marking a decrease of more than 7% over the past day.
The token has experienced a downturn of over 35% throughout the week and a staggering 48% decline over the past month, as per data from CoinMarketCap.
