Uniswap founder Hayden Adams responded to community criticism on Aug. 6, saying the 1% liquidity pool fee adopted by some token launch platforms is roughly equivalent to a 2% buy-sell spread. He called it their main revenue extraction method, arguing it raises trader costs and makes the initial liquidity pool less efficient as the token scales. Adams contrasted that with Uniswap's pools.trade, which charges 0.25% and automatically reinvests fees, saying it better supports long-term liquidity. He also noted launchpad LP capital often comes from zero-cost locked assets, so it faces no price risk requiring a high fee.
BlockBeats reported on Aug. 6 that Uniswap founder Hayden Adams had responded to community doubts over launchpad fee structures. Some token launch platforms charge a 1% liquidity pool fee, Adams said, which equals roughly a 2% buy-sell spread and serves as their main source of revenue extraction.
That fee model raises costs for traders, he argued, and it can undermine the efficiency of an initial liquidity pool once the token grows in scale. Uniswap's own pools.trade takes a 0.25% fee and automatically reinvests trading fees into the pool, which Adams said is better suited to long-term liquidity.
He also said LPs on launch platforms are usually drawn from zero-cost locked assets, meaning they do not carry the kind of price risk that would justify a higher fee.
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