Uniswap
Aug 7, 2026

Uniswap Co-founder Unveils Auto-Compounding Liquidity Design, Set for Roadmap Inclusion

On August 7, Uniswap co-founder Hayden Adams published a post detailing an auto-compounding liquidity design he personally contributed to pools.trade, describing it as "quite elegant." Under the mechanism, once a liquidity position is deposited into a smart contract, anyone can withdraw all unclaimed fees, provided they simultaneously increase the size of the position by 0.2%. As fees accumulate over time, once their value exceeds 0.2% of the liquidity, searchers are naturally incentivized to add 0.2% liquidity to claim the fees, forming a self-sustaining compounding loop without external intervention. Adams called the mechanism "super simple and clean," and said it is built on Uniswap's token vault concept. He further noted that the design is also applicable to regular Uniswap LP positions for auto-compounding, so the team has decided to incorporate it into the Uniswap roadmap. That means Uniswap liquidity providers may eventually get a native auto-compounding feature. Adams shared the proposal on August 7, and the design is now slated for the Uniswap roadmap.

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Uniswap Co-founder Unveils Auto-Compounding Liquidity Design, Set for Roadmap Inclusion
Uniswap
Aug 6, 2026

Uniswap Founder Hayden Plans to Add Auto-Compounding LP Positions to Roadmap

Uniswap founder Hayden announced on X that the technical design for auto-compounding liquidity is his personal contribution to the platform pools.trade. The design works by having liquidity positions deposited into a smart contract. The core rule is that any person can withdraw the full amount of unclaimed fees attached to a given position, but only on the condition that they increase the size of that liquidity position by 0.2%. Consequently, fees accumulate over time. When the value of accumulated fees exceeds 0.2% of the liquidity in the position, searchers receive a natural financial incentive to add that 0.2% in liquidity to the pool and then collect the fees. This mechanism is based on the Uniswap token jar concept, and Hayden noted it can also be applied to automatically compound ordinary Uniswap LP positions. For that reason, he said, he will be adding the feature to the project's roadmap.

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Uniswap Founder Hayden Plans to Add Auto-Compounding LP Positions to Roadmap