- Uniswap founder says critics misunderstand the v4 upgrade and are pushing FUD.
- Hayden Adams says rumors about a reduction in Liquidity Pool fees are false.
- Critics are highlighting more issues about Uniswap v4 beyond fee structuring.
Uniswap founder Hayden Adams has dismissed “misleading” speculations about the protocol’s v4 upgrade. In his latest post on X, Adams stated that there are “Tons of FUD and misunderstanding around the v4 fee switch.”
Adams’ Uniswap v4 Fees Argument
According to Adams, rumors about a reduction in Liquidity Pool (LP) fees are false. He explained that protocol fees are additive, not subtractive. Adams stated that LPs earning 30bp per swap still earn the same amount.
The Uniswap founder also dismissed the notion that the protocol takes 25% of LP profits, describing it as “Made-up Math.” Explaining the actual situation, Adams noted that Uniswap collects a 5bp protocol fee on a 30bp pool, which represents approximately 14% of total swap fees and 0% of what LPs were already earning.
In further defence of the v4 upgrade, Adams criticized those claiming that the cut from the protocol is too high, comparing it with charges on centralized exchanges (CEX). According to him, CEXs charge 100-200bp per swap. He also noted that 5bp on a 30bp tier is 20-40x cheaper on Uniswap v4 despite having the deepest distribution in DeFi.
What Exactly is Uniswap v4?
For context, Uniswap v4 is a highly customizable, gas-efficient decentralized exchange protocol launched on Ethereum and major Layer-2 networks in January 2025. The version transitioned Uniswap from a rigid liquidity system to a programmable platform by introducing modular smart contract plugins called “Hooks.”
As reflected in Adams’ argument and defense of the Uniswap v4 protocol, the solution has faced backlash from the DeFi community. Critics of the protocol point to its highly controversial activation fees, security concerns surrounding hooks, fracturing liquidity across customized pools, and corporate licensing constraints.
Other Concerns for Uniswap v4 Critics
Adams’ latest post focused on addressing concerns raised around the protocol fees. Critics expect clarification concerning the other issues raised, particularly with security and corporate licensing. According to them, while custom smart contract hooks allow developers to build specialized pool features, they create extreme security vulnerabilities.
Meanwhile, they remain uncomfortable with the Uniswap v4 code being locked under a proprietary BSL. It forbids developers from commercially copying, modifying, or launching direct forks of the protocol until after four years.
Related: Uniswap’s UNInception: Why the Protocol Is Finally Turning On the Fee Switch
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