Kyu pfp
Kyu

@kyu

Protocol Fee Essentially, liquidity providers (LP) will revenue share with the protocol. - Uni V2: 1/6 - Uni V3: 1/4 for 0.01% and 0.05% pools, 1/6 for 0.30%, 1% pools. - Uni v4: TBD It’s a worse deal for LPs other things being equal. Likely LPs are less incentivized to provide liquidity and it could potentially make LPs to move to elsewhere. Moreover, once fee Uni V4 is implemented and applied universally, it could disincentivize DEXs to build on top of Uni V4 and go with custom contracts (today projects like @zora and @euler built on top of Uni V4). It could be a soft rug to existing projects if they weren’t aware of this potential fee switch possibility 😅.
4 replies
0 recast
6 reactions