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Uniswap Founder Responds to v4 Fee Switch Controversy, Clarifies Misunderstanding Around "LP Fee Reduction"
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BlockBeats News, July 29th, Uniswap founder Hayden Adams responded to the v4 fee switch controversy, clarifying that the "LP fee reduction" was a misunderstanding. The protocol fee is additive rather than subtractive, and LPs still earn 30 basis points per transaction. Regarding the claim that the "protocol takes 25% of LP profits," he stated that on a 30 basis points pool, the protocol fee is 5 basis points, representing about 14% of the total transaction fee, while LPs themselves have not seen a fee reduction.

Hayden Adams also pointed out that centralized exchanges (CEXs) charge 100 to 200 basis points per transaction, making Uniswap's 5 basis point fee at the 30 basis point tier 20 to 40 times cheaper.

Source: BlockBeats

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