Uniswap Labs, the developer company behind the Uniswap protocol, has seen cumulative front-end costs surpass $1 million within a month of launch.
The protocol introduced a 0.15% fee on October 17, affecting users’ transactions on its web interface and wallet app with assets such as ether, wrapped bitcoin and a range of stablecoins including USDC and DAI.
This new fee structure is separate from the long-standing 0.3% protocol fee that Uniswap has charged its users, which serves as an incentive as it is distributed among liquidity providers. In contrast, the newly accrued front-end fees will only be sent to Uniswap Labs, marking a new revenue stream for the company.
Users who want to avoid front-end fees have the option of using alternative interfaces such as 1inch or Matcha – although it’s worth noting that these platforms may offer different reimbursement models.
According to The Block’s dashboard, the front-end has earned a total of $1.1 million in the last 25 days since launch. This is an average turnover of $44,000 per day, which equates to an annualized turnover of over $16 million.
Over the past day, more than 16% of all Uniswap trading volume was done through the front-end, data from Dune Analytics shows.
