Uniswap founder Hayden Adams rejected assertions that newly activated protocol fees on the exchange’s version 4 reduce earnings for liquidity providers. He said the criticism rests on incorrect assumptions about how the fees operate.

Governance recently approved the introduction of protocol fees for selected version 4 pools across multiple blockchains. Adams stated that the fees are additive and do not subtract from the amounts received by liquidity providers. He disputed suggestions that the protocol captures 25 percent of provider profits. In a 30-basis-point pool, a 5-basis-point protocol fee equates to roughly 14 percent of total swap fees rather than a cut in provider returns.

Uniswap remains the largest decentralised exchange by total value locked, with approximately $3.06 billion secured on the protocol.