The company that developed the Uniswap protocol, Uniswap Labs, has raised the costs that users must pay to trade on its interface.
It is now 0.25% instead of 0.15% for the majority of swaps made on the site.
Blockchain data indicates that the modification was put into effect on April 10th.
Some Transactions Are Not Charged
Although most swaps are impacted by the fee increase, some transactions are not.
This includes swapping Ethereum (ETH) for Wrapped Ether (WETH) and trading stablecoins based on the same underlying currency.
Instead of depending on the interface created by Uniswap Labs, users can choose to use other interfaces to access the Uniswap protocol and without paying the charge.
However, the revised fee—which is set by Uniswap Labs—will apply to any other trades made on the mainnet and supported Layer 2 networks.
The fee adjustment was significant because it happened soon after Uniswap founder Hayden Adams revealed that the business had received a Wells Notice from the Securities and Exchange Commission (SEC) signaling that a lawsuit would be filed.
The SEC’s investigation into Uniswap was initially made public last summer.
It is likely that Uniswap Labs will face charges from the SEC for operating as an unregistered exchange and brokering unlicensed securities.
Adams underlined in an interview with Bankless that Uniswap Labs is a software development firm that has contributed to the fundamental advancement of the Uniswap protocol.
Proposal to Divide Revenue to Token Holders Rejected by Uniswap
A governance proposal to modify the platform’s pricing structure and allow revenue distribution to holders of UNI tokens was rejected by the Uniswap community last month.
The plan that was rejected was to provide the decentralized autonomous organization (DAO) the power to alter Uniswap’s charge structure in order to activate the much-anticipated “fee-switch.”
The distribution of protocol revenue to holders of UNI tokens would have been made possible by this technique.
Ever since Uniswap delivered its UNI coin to early adopters in 2020, the activation of a fee-switch has been a desired objective.
In order to make transactions easier, Uniswap introduced a browser sidebar extension, a limit order placement feature, and other tools earlier this year.
The Uniswap Extension streamlines the process of trading, signing transactions, and exchanging digital assets by introducing a new way to work with them straight from a browser sidebar.
Uniswap posted on social media, “Let’s be real, most wallet extensions are stuck in the past, with old UX paradigms and clunky onboarding flows.” We created our own because of this.
A Limit Orders function that lets users automatically buy or sell cryptocurrency at preset prices was also introduced in the update.
In the meantime, UNI has dropped more than 7% in the last day and is now trading at $7.
According to CoinMarketCap data, the token has decreased by 48% over the last month and by more than 35% over the last week.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
