Uniswap Labs quietly raises front-end trading fees and expands the range of charges, preparing for potential litigation?

The decentralized exchange Uniswap recently quietly adjusted its frontend interface fee from 0.15% to 0.25%, and this fee will apply to almost all trading pairs except for stablecoin swaps or ETH/WETH trades. This move may be in preparation for potential actions by the SEC.

Background: Uniswap Frontend Fee

The Uniswap development team, Uniswap Labs, announced last year that they would start charging fees for frontend interfaces. For trades of certain mainstream coins on the official website, a fee of 0.15% of the transaction amount will be charged and collected by the development team. This fee is referred to as the "frontend fee" or interface fee.

Uniswap to Start Charging "Interface Fees" Tomorrow! Specific Coin Trades to Incur 0.15% Fee, Limited to Frontend Users

As the adjustment of this fee was not subjected to governance and does not directly benefit the community, it has sparked considerable discussion in the market. The development team clarified that the frontend interface falls under the brand and management scope of Uniswap Labs and is not part of the on-chain protocol, hence not requiring a community governance decision.

Uniswap Increases Frontend Fee to 0.25%

Quietly Raising Prices

However, the community recently discovered that the fee for using the Uniswap frontend had quietly increased to 0.25%. Additionally, this fee will be extended to almost all trading pairs, except for exchanges between stablecoins or ETH-wrapped WETH pairs.

According to the official documentation from Uniswap Labs regarding frontend interfaces, the last update was four days ago, indicating a probable change in the explanation of frontend interface fees.

Addressing Potential Litigation Risks

Community members speculate that this move may be related to actions taken by the SEC against the development team. Increasing frontend fees could help address potential litigation risks and subsidize the development of new products and legal expenses.

Uniswap Receives Wells Notice, Founder Vows to Fight SEC to the End

The earliest transaction involving this frontend interface fee occurred approximately four days ago, coinciding with the time when the SEC issued a Wells notice to Uniswap Labs.