Uniswap Labs, the creator of the popular decentralized trading protocol Uniswap, is taking an important step by introducing transaction fees for the first time in its history.
Uniswap’s native token, UNI, fell 2.4% before the introduction of the new transaction fees, while Bitcoin recovered, with UNI registering a 4.5% decline against the key digital asset.
Hayden Adams, the creator of Uniswap, announced this move, which states that starting October 17, a 0.15% swap fee will be applied to certain tokens traded via their web app and wallet.
Uniswap Labs emphasizes transparency and sustainable business operations and suggests that this decision is in line with its long-term vision. As Adams explained, the company wants to maintain the protocol as a decentralized public good without permission.
The compensation will reportedly support the ongoing research, development and expansion that Uniswap Labs is engaged in, improving the interface and providing users with a quality experience. This move is separate from the move to the Uniswap Protocol fee, which is entirely subject to voting by the UNI token management.
Uniswap Labs’ decision has resulted in a flat rate of 0.15% 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 only applies to 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 exempt from this fee, increasing the cost-effectiveness of transactions for certain users.
The fee, which Uniswap Labs claims, is one of the lowest in the industry compared to other DeFi and CeFi platforms. Users can view the fees in both the Uniswap web app and the wallet, with the interface fees visible in the swap details section.
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