Uniswap Raises Swap Fees Days After SEC Warning – Crypto News – Crypto News
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Uniswap Raises Swap Fees Days After SEC Warning Uniswap Raises Swap Fees Days After SEC Warning

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Uniswap Raises Swap Fees Days After SEC Warning – Crypto News

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2 years ago

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The platform has hiked transaction costs to 0.25% from 0.15%.

Uniswap Labs, the company behind the biggest decentralized exchange by trading volume of the same name, raised swap fees days after the U.S. securities regulator warned it was coming after the DEX.

Uniswap hiked fees on swaps via its user-facing app to 0.25% from 0.15%, according to its website.

The move sparked speculation that Uniswap is seeking to raise funds to fight a coming lawsuit from the U.S. Securities and Exchange Commission.

The SEC last week sent Uniswap a Wells notice, which is a document from the agency that precedes enforcement action. Uniswap founder Hayden Adams responded by saying the team is ready to fight back. It’s unclear what the SEC will be alleging against Uniswap.

User Reaction

Some users weren’t happy with the fee increase.

“So Uniswap is making YOU pay for their legal fees,” wrote one user on X, while the pseudonymous Nebbly added “like they don’t have enough money already.”

Meanwhile others understand the need for them, and are actively supporting the company.

“Given the timing, I assume this to help build their warchest for the impending battle with the SEC,” wrote senior research analyst for Blockworks, Dan Smith. “I will blast a few swaps through their frontend to support the cause.”

Uniswap Labs did not immediately reply to a request for comment from The Defiant.

Uniswap’s UNI token surged 5% to $7.51, countering some of its recent losses of 34% in the past week.

UNI Price – Coingecko

Uniswap Fees

Uniswap accrued $4.1 million in fees in the past 24 hours, and $134 million in 30 days, of which Uniswap Labs received about 11%, or $447,000 in the past 24 hours, and $5.4 million in 30 days, according to data from DeFiLlama.

The SEC’s charge against DeFi’s biggest exchange is the latest in a series of attacks to rein in the crypto industry. Uniswap Labs argued in a blog post that the SEC only has jurisdiction over securities and that secondary market transactions in digital assets generally do not constitute investment contracts.

Until Oct. 2023, Uniswap Labs didn’t charge swap fees on its trading pairs. On Oct. 17, the company installed a 0.15% fee on trading pairs driving most of the platform’s traffic, including ETH, USDC, WETH, USDT and DAI, on both its web app and wallet.

Uniswap Labs said at the time the decision to charge for certain swaps is a way to create a sustainable business model moving forward.
To date, the company has received $66 million in annualized fees.

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