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Uniswap Founder Questions Aerodrome Revenue Model: 'Charging 100% LP Fees and Returning in Token Form' Creates Illusionary and Meaningless Income
Summary: Uniswap founder Hayden Adams and Aerodrome CEO Alexander are in dispute over the LP fee revenue model, with Adams stating on X platform that Alexander's claim of their platform's 'revenue' being five times that of UniSwap is misleading. This is because Aerodrome charges 100% of LP fees and returns them to LP through token issuance ...
Uniswap founder Hayden Adams and Aerodrome CEO Alexander are in dispute over the LP fee revenue model, with Adams stating on X platform that Alexander's claim of their platform's 'revenue' being five times that of UniSwap is misleading. This is because Aerodrome charges 100% of LP fees and returns them to LP through token issuance or liquidity incentives, making the revenue figures appear large but not representing sustainable fees. If Uniswap were to charge 100% of LP fees and return them in token form, their reported 'fee revenue' could reach $1 billion, but the Uniswap protocol fee design is different, with some exchange fees going to the protocol and most still directly to LP, aiming for long-term sustainability rather than inflated surface data.
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Link: Uniswap Founder Questions Aerodrome Revenue Model: 'Charging 100% LP Fees and Returning in Token Form' Creates Illusionary and Meaningless Income [Copy]
