Uniswap Labs has surpassed $1 million in revenue within a month from the front-end fee implementation of Uniswap, a decentralized cryptocurrency exchange (DEX) and altcoin project. The company introduced a 0.15% fee for web interfaces and wallet applications in mid-October this year.
Uniswap Labs, the developer company behind the largest decentralized cryptocurrency exchange Uniswap, has generated over $1 million in revenue within a month after implementing the cumulative front-end fee.
The company started charging a 0.15% fee for transactions on web interfaces and wallet applications on October 17th. This new fee structure was different from the previous 0.3% protocol fee that was distributed among liquidity providers as an incentive. The new front-end fee implementation is directed solely to Uniswap Labs, aiming to increase the company’s revenue.
Users who do not want to pay the front-end fee have the option to use alternative interfaces such as 1inch or Matcha, but it should be noted that these platforms have different fee models.
Data provided by The Block shows that the revenue generated from Uniswap’s front-end fee implementation has exceeded $1.1 million in the past 25 days. With a daily average revenue of $44,000, this translates to a return of over $16 million annually.
According to Dune Analytics, over 16% of Uniswap’s trading volume has been conducted through the front-end in recent days. With the overall activity in the cryptocurrency market increasing, it is expected that the increase in transactions through the front-end on Uniswap and the resulting revenue will also increase significantly.