Hayden Adams argues v4 protocol fees are additive and do not cut liquidity provider earnings, countering recent criticism.
Uniswap founder Hayden Adams dismissed claims that newly activated v4 protocol fees reduce liquidity provider earnings, calling the criticism a misunderstanding. He clarified that a 5-basis-point fee in a 30-basis-point pool represents about 14% of total swap fees, not a direct cut to LP profits.
The governance-approved fees apply to selected v4 pools across multiple blockchains. Adams emphasized that protocol fees are additive rather than deducted from existing LP fees, aiming to address concerns raised in recent debates.
Uniswap remains the largest decentralized exchange by total value locked, with $3.06 billion secured on the protocol, per DefiLlama data.