In a major transition from its no-fee structure, Uniswap is introducing a 0.15% swap fee for certain cryptocurrency tokens in its web application and wallet.
For beginners, crypto swapping involves directly exchanging one crypto token for another without the involvement of a third party. This can be done through decentralized exchanges (DEXs), centralized exchanges (CEXs), or swap protocols.
Uniswap Imposes 0.15% Fee on Certain Swaps
Effective from Tuesday, October 17, Uniswap stated that it will begin charging 0.15% fee on swaps involving Ethereum (ETH), USD Coin (USDC), Wrapped Ether (WETH), Tether (USDT), DAI, Wrapped Bitcoin (WBTC), Angle Protocol (agEUR), Gemini Dollar (GUSD), Liquidity USD (LUSD), Euro Coin (EUROC), and StraitsX (XSGD).
According to the decentralized exchange, the fee will only be applicable if both the input and output tokens are among those mentioned above. It added that swaps from one stablecoin to another stablecoin and wraps between ETH and WETH are excluded from this fee.
Uniswap noted that the newly introduced fee differs from its existing protocol fee switch, determined by the UNI token governance. The platform stated that the new fee structure will help fund its operations sustainably.
Commenting on the development, Uniswap founder Hayden Adams said:
“This interface fee is one of the lowest in the industry, and it will allow us to continue to research, develop, build, ship, improve, and expand crypto and DeFi.”
Crypto Community Reacts
Meanwhile, the new fee structure was met with mixed reactions from the crypto community, with some people arguing that it is necessary to generate revenue for the protocol and others arguing that it will make Uniswap less competitive.
One crypto enthusiast named Amir pointed out that users already pay fees to blockchain protocols for the ownership they offer and that achieving a friendly user experience often comes at a cost. Backing Uniswap’s decision, he argued that one of the reasons the user experience in crypto is poor is the lack of a “clear revenue stream” at the interface layer.
