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This past week, Uniswap Labs\u2019 development team instituted a select fee for their decentralized exchange, Uniswap. The initial results appear to be extremely lucrative, with the team earning $120,000 over 48 hours.<\/p>\n
Uniswap founder Hayden Adams announced the fees Monday in an X post. The fees applied only to 11 assets, only when two of those assets were traded in a paired pool, and only if the user was trading on the Uniswap mobile app or on the uniswap.org-linked frontend.\u00a0<\/p>\n
A flash report<\/a> from Blockworks Research estimated that, despite the relatively constrained parameters, the fee had the potential to rake in upwards of $33 million per year, based on year-to-date volume.\u00a0<\/p>\n Read more:<\/strong> Uniswap Labs to institute 0.15% fee on select assets and frontends<\/a><\/p>\n Just a few days into the fee being live, that estimate initially appears to be on the higher end, but it\u2019s nonetheless good business for Uniswap Labs.\u00a0<\/p>\n Since roughly 1 pm ET on Tuesday, Oct. 17 when the fees went live, they have generated over $133,000 for Uniswap Labs, averaging roughly $60,000 per day \u2014 an annualized sum of over $22 million.\u00a0<\/p>\n Source: Blockworks Research<\/em><\/a><\/p>\n The majority of the funds have originated from base layer Ethereum<\/a>, particularly during a high-volatility period on Wednesday when ether (ETH<\/a>) topped 90% of fee volume during a three-hour span.\u00a0<\/p>\n A Uniswap Labs spokesperson declined to comment.\u00a0<\/p>\n Uniswap is by far the largest and most structurally important decentralized exchange. It boasts $3 billion in total value locked (TVL) and $625 million in trading volume in the past 24 hours. The exchange has processed $1.73 trillion in aggregate lifetime trading volume.<\/p>\n In Adams\u2019 X post, the founder cited company growth as a motivation for instituting the fee. Uniswap Labs raised $165 million in October 2022.<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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