The Uniswap protocol’s developer, Uniswap Labs, has raised the prices that customers must pay to trade on the platform.
Swaps between wrapped Ethereum (WETH) and Ethereum (ETH) and stablecoins based on the same underlying currency are all part of this.
Users may also choose not to use the Uniswap Labs-developed interface and instead use an alternate interface to access the Uniswap protocol, which will avoid the cost.
Uniswap Labs decides on the updated cost, but it applies to all other transactions on the mainnet and compatible Layer 2 networks.
Notably, Uniswap founder Hayden Adams acknowledged that the business had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), suggesting prospective litigation soon after the fee modification.
Last summer, it was reported for the first time that the Securities and Exchange Commission (SEC) was conducting an investigation into Uniswap.
Unlicensed exchange and securities brokering are likely charges that Uniswap Labs may face from the SEC.
Adams highlighted Uniswap Labs’ role as a software development firm and its involvement in the fundamental development of the Uniswap protocol during an interview with Bankless.
The Uniswap community voted against a governance proposal last month that would have altered the platform’s pricing system and made it possible to distribute money to holders of UNI tokens.
The defeated plan was to give the decentralized autonomous organization (DAO) control over Uniswap’s pricing mechanism, paving the door for the much-anticipated “fee switch.” Using this system, UNI token holders may have received a portion of the protocol’s earnings.
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