Uniswap Labs’ fee switch yields $120K in opening days

Uniswap Labs activated a fee switch for select frontends, and the results are big business

article-image

rafapress/Shutterstock modified by Blockworks

share

This past week, Uniswap Labs’ development team instituted a select fee for their decentralized exchange, Uniswap. The initial results appear to be extremely lucrative, with the team earning $120,000 over 48 hours.

Uniswap founder Hayden Adams announced the fees Monday in an X post. The fees applied only to 11 assets, only when two of those assets were traded in a paired pool, and only if the user was trading on the Uniswap mobile app or on the uniswap.org-linked frontend. 

Loading Tweet..

A flash report from Blockworks Research estimated that, despite the relatively constrained parameters, the fee had the potential to rake in upwards of $33 million per year, based on year-to-date volume. 

Read more: Uniswap Labs to institute 0.15% fee on select assets and frontends

Just a few days into the fee being live, that estimate initially appears to be on the higher end, but it’s nonetheless good business for Uniswap Labs. 

Since roughly 1 pm ET on Tuesday, Oct. 17 when the fees went live, they have generated over $133,000 for Uniswap Labs, averaging roughly $60,000 per day — an annualized sum of over $22 million. 

Source: Blockworks Research

The majority of the funds have originated from base layer Ethereum, particularly during a high-volatility period on Wednesday when ether (ETH) topped 90% of fee volume during a three-hour span. 

A Uniswap Labs spokesperson declined to comment. 

Uniswap is by far the largest and most structurally important decentralized exchange. It boasts $3 billion in total value locked (TVL) and $625 million in trading volume in the past 24 hours. The exchange has processed $1.73 trillion in aggregate lifetime trading volume.

In Adams’ X post, the founder cited company growth as a motivation for instituting the fee. Uniswap Labs raised $165 million in October 2022.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

Plus, is Polymarket this cycle’s breakthrough mainstream app?

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.