Hayden Adams: A 1% increase in the liquidity pool fee raises traders' costs
2026-08-06 15:18:38
According to CoinMeta, Uniswap founder Hayden Adams responded to community doubts by stating that the 1% liquidity pool fee adopted by some token issuance platforms is equivalent to a trading spread of about 2%, which constitutes their main source of revenue. This not only increases the costs for traders but also leads to inefficiency in the initial liquidity pool as the token supply expands. He believes that a 0.25% fee combined with automatic reinvestment of transaction fees is more conducive to long-term liquidity, and that the providers of liquidity for these issuance platforms usually come from zero-cost locked-up assets, meaning there is no price risk that would warrant a high fee as compensation.
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