Uniswap Labs, the primary entity behind the decentralized crypto exchange Uniswap, has initiated a fee of 0.15% on specific cryptocurrency swaps conducted through its platform.
In addition, this fee, effective as of Tuesday, will apply to trades involving assets such as ETH, USDC, and other tokens that are executed through Uniswap Labs’ front end.
The New Interface Fee
Uniswap Labs has introduced this fee, which is distinct from Uniswap’s existing “protocol fee” managed by governance voters. Furthermore, the purpose of this fee is to sustainably fund Uniswap Labs’ operations, as stated in a blog post.
Additionally, Uniswap’s founder, Hayden Adams also highlighted in a tweet that this “interface fee” is one of the lowest in the industry and will support the ongoing research, development, and expansion of crypto and DeFi initiatives.
Eligible Trade Criteria
The new “interface fee” applies to trades involving at least two of the following tokens – ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, or XSGD, according to an FAQ. Notably, stablecoin swaps and trades between ether and wrapped ether will not be subject to this fee.
Further, a Uniswap spokesperson clarified that both the input and output tokens need to be on the list for the fee to be applicable. Lastly, he also emphasized that the fee applies to both ends of the transaction.