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.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

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

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US

article-image

Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said