Uniswap Labs Hits $50M Frontend Fees


(MENAFN- eTrendy Stock) Uniswap maintains its top spot as the largest decentralized exchange (DEX) by trading volume, accounting for nearly one-third of the total DEX trading volume in July.

According to a post made by Vincent crypto on X, Uniswap Labs has now collected over $50 million in frontend fees. Starting in October 2023, they began charging a 0.15% fee on transactions made through their web interface and wallet app. This fee increased to 0.25% in mid-April 2024.

Uniswap Labs Hits $50 Million Milestone in Frontend Fees.

Since the beginning of the year, Uniswap's frontend fees have skyrocketed from $3.7 million to over $50.6 million, marking an impressive thirteenfold increase. This surge reflects Uniswap's ongoing decentralized exchange (DEX) market dominance.

Uniswap continues to lead the DEX sector by trading volume, handling $54 billion of the $154 billion total swap volume in July 2024. This positions Uniswap as the top player, commanding nearly one-third of the market share.

While Uniswap Labs benefits from these fees, users have alternatives. DEX aggregators 1inch, Cowswap, and Paraswap allow users to bypass Uniswap's fees. Despite the availability of these alternatives, Uniswap's front end remains highly popular. In July, it accounted for 25.7% of DEX activity, outpacing 1inch, which captured 19.8% of the market.

Uniswap Labs' continued success underscores its dominant position in the DEX landscape, even as users explore various options to manage their transaction costs.

Uniswap Moves Forward with On-Chain Vote Amid SEC Scrutiny

Uniswap initiated an on-chain vote on May 31 to automate its fee collection and distribution processes. This step was designed to alleviate the workload on Uniswap Governance while preserving the integrity of the decentralized finance (DeFi) protocol.

The move comes after a Wells Notice issued by the Securities and Exchange Commission (SEC) in April. The SEC's notice accuses Uniswap of operating as an unregistered securities exchange and claims its interface and wallet function as unregistered securities brokers.

In response, Uniswap Labs has strongly contested the SEC's allegations. The company argues that the protocol does not qualify as an exchange and should not fall under SEC regulation. Uniswap Labs asserts that, although it developed the protocol, it now functions merely as a“passive” technology for cryptocurrency trading.

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