Uniswap Labs, the creator of the popular decentralized trading protocol Uniswap, is taking a significant step by introducing a transaction fee for the first time in its history.
Uniswap’s native token, UNI, fell 2.4% ahead of the introduction of the new transaction fees, while Bitcoin rallied, causing UNI to register a 4.5% drop against the top digital asset.
Hayden Adams, the creator of Uniswap, announced the move, stating that a 0.15% swap fee will be applied to certain tokens traded through their web app and wallet, effective from Oct. 17.
Uniswap Labs emphasizes transparency and sustainable operations and suggests this decision aligns with its long-term vision. As Adams explained, the firm wishes to maintain the protocol as a permissionless, decentralized public good.
The fee will reportedly support the continuous research, development, and expansion that Uniswap Labs has been engaged in, helping to improve the interface and offer users a quality experience. This move is separate from the Uniswap Protocol fee switch, which is entirely subject to votes by UNI token governance.
Uniswap Labs’ decision has led to a 0.15% flat fee on a limited selection of tokens, including ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, XSGD, according to their help center. This fee is only applicable on swaps involving these tokens performed through Uniswap Labs interfaces on the mainnet and supported layer 2 solutions.
However, swaps between one stablecoin to another and between ETH and WETH are exempted from this fee, enhancing the cost-effectiveness of transactions for certain users.
The fee, which Uniswap Labs claims, is one of the lowest in the industry when compared to other DeFi and CeFi platforms. Users can review the fees in both the Uniswap web app and wallet, with the interface fee visible in the swap detail section.
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