Uniswap has maintained its position as the most prominent decentralized exchange in terms of volume over the past seven days, with a total volume of $8.1 billion.
According to DefiLlama data, Uniswap, a prominent decentralized exchange (DEX), generated $52.75 million in fee revenue from April 1 to Sept. 30, 2024. This substantial increase is a direct result of Uniswap Labs’ decision to increase its user-interface swap fee in April, a decision that considerably increased earnings.
In April, Uniswap Labs raised its user-interface swap fee to 0.25% on all trading pairings, with the exception of stablecoin pairs and Wrapped Ethereum (WETH). This rate was previously 0.1% and applied to only ten distinct tokens.
The Uniswap website imposes this fee on users who conduct transactions directly; merchants who employ aggregators are not subject to this fee. The fee is in addition to the standard trading fees on Uniswap, which vary from 0.01% to 1%.
In the past, Gabriel Shapiro, the general counsel for Delphi Labs, a Web3 research and development platform, has been particularly vocal in his critique of Uniswap’s increases in fees. One of his most significant criticisms has been that the implementation of fees for the protocol would not benefit UNI, the exchange’s native token, and would thereby create a conflict between shareholders and tokenholders.
Monthly fee revenue has experienced a substantial increase since the fee adjustment. The fees in March were $4 million, but they increased to $9.54 million in April as a result of the fee change. In May, they reached a record high of $11.53 million. In September, fees totaled $7.31 million, despite a decline in market activity. Fees from the previous 24 hours equate to $666,662.
Uniswap has maintained its position as the most prominent decentralized exchange in terms of volume over the past seven days, with a total volume of $8.1 billion. PancakeSwap, with a seven-day volume of $5.9 billion, is the runner-up, demonstrating that the fee increase did not threaten Uniswap’s market dominance in the DEX.
Also in April, Uniswap Labs got a Wells Notice from the U.S. Securities and Exchange Commission (SEC), which is frequently a sign that the SEC may take legal action. The organization responded by claiming that it is “prepared to litigate” the matter. The organization may incur legal expenses as a consequence of regulatory scrutiny due to the elevated fee revenue.
Uniswap advocated for the SEC to withdraw its proposal to regulate the decentralized finance (DeFi) sector in July. The DEX’s legal team informed the regulator in a letter that “for better or worse—the Commission will not be able to claim the benefit of Chevron deference to support its aggressive and atextual interpretation of its legislative power.”
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