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Uniswap Labs Increases Trading Fees
Uniswap Labs, the creator of the Uniswap protocol, recently raised the fees charged to users for trading on its interface. The fee has been increased from 0.15% to 0.25% for most swaps conducted through the platform.
Certain Transactions Exempt From Fee
While the fee hike impacts the majority of swaps, certain transactions are exempt from the fee. This exemption includes trades involving stablecoins based on the same underlying currency and swaps between Ethereum (ETH) and Wrapped Ether (WETH).
Users have the option to avoid the fee by using alternative interfaces to access the Uniswap protocol instead of the interface developed by Uniswap Labs. However, all other trades on the mainnet and supported Layer 2 networks will be subject to the revised fee set by Uniswap Labs.
Uniswap’s Recent Developments
The fee adjustment coincided with Uniswap founder Hayden Adams revealing that the company had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), indicating a potential lawsuit. The SEC is investigating Uniswap for allegedly acting as an unlicensed exchange and brokering unlicensed securities.
Uniswap Labs rejected a governance proposal last month that aimed to introduce changes to the platform’s fee mechanism, including revenue distribution to UNI token holders. The proposal sought to activate a Uniswap “fee-switch” to distribute protocol revenue to UNI token holders.
Earlier this year, Uniswap launched a browser sidebar extension with a limit order placement function and other tools to facilitate cryptocurrency transactions. The extension provides a new way to interact with digital assets directly from a browser sidebar, simplifying the process of swapping digital assets, signing transactions, and trading.
UNI Token Performance
Currently, the UNI token is trading at $7, experiencing a more than 7% decrease over the past day. It has declined by over 35% in the past week and by 48% in the past month, according to data from CoinMarketCap.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
