Uniswap CEO Hayden Adams has responded to claims that Uniswap was asking for up to $20 million to deploy protocol on new chains. Users on the social media platform X had voiced concerns about this alleged fee.
The CEO posted on his X account, denying the accusations. He explained that neither Uniswap Labs nor the Uniswap Foundation charge any fees for protocol deployments.
“I rarely engage with folks trying to bait engagement, but for the record, this is completely false,” he said. “Neither Uniswap Labs nor Uniswap Foundation have ever charged for a protocol deployment.”
Rather, he stated that these deployments are decided through governance votes. When it comes to deploying Uniswap on a new blockchain, the process depends on the amount of work and activity needed.
All of these started when Alexander, an X user said that Uniswap had requested $20 million for “an ineffective Uniswap deployment”.
This comment followed a post from Millicent co-founder Kene Ezeji-Okoye, who alleged that Uniswap had charged $10 million for a protocol deployment, plus another $10 million in user incentives focused on carbon credit trading.
To clarify the deployment process, the Uniswap CEO responded to comments, which in turn sparked more discussions about Uniswap’s transparency.
Uniswap is well-known for enabling users to provide liquidity and trade tokens, such as ERC-20 tokens, on the Ethereum blockchain and other blockchains. It was developed by Uniswap Labs.
Instead of using a traditional order book system, Uniswap relies on liquidity pools. These pools consist of two different types of tokens that users can trade. When a user wants to swap one token for another, they trade against these pools.
Anyone can contribute to these liquidity pools by adding an equal value of both tokens, earning a small fee from the trades that occur in the pool. This allows liquidity providers to profit by letting others trade with their tokens.
Uniswap also has its own token, UNI, which grants holders the right to vote on important decisions regarding the platform’s operations, ensuring it remains community-driven.
In 2024, Uniswap achieved significant milestones, particularly through its foundation’s financial initiatives aimed at enhancing the DeFi ecosystem.
In the first quarter, the Uniswap Foundation issued $4.34 million in new grants and allocated $2.79 million to support long-term projects and developers. By mid-year, total grant funding reached $7.55 million, with a focus on substantial projects exceeding $250,000 to foster network growth and innovation.
Uniswap also advanced its technology by adopting the ERC7683 token standard, enabling cross-chain swaps and enhancing system connectivity and liquidity. Additionally, the foundation earmarked over $2.7 million for security audits and governance improvements, concentrating on Uniswap v4 and smart contract evaluations.
Five months ago, CryptoTvplus reported that Uniswap had surpassed $2 trillion in transaction volume. Uniswap’s success can be attributed to its intuitive interface, liquidity pools, and extensive token support.
