Uniswap has turned on the fee switch for its v4 liquidity pools. The move has pushed the decentralized exchange's protocol revenue to $325,000 per day.
Why the fee switch matters
The fee switch directs a portion of trading fees to the protocol itself rather than leaving all revenue with liquidity providers. This change is designed to improve the long-term sustainability of Uniswap's platform and strengthen its competitive position in the DeFi market.
Impact on UNI token supply
By collecting fees, the protocol reduces the circulating supply of UNI tokens. That reduction could put upward pressure on the token's price, though the actual effect will depend on market conditions and trading volume.
The activation is already reflected in revenue figures. The coming weeks will show whether the fee switch delivers on its promise of stronger protocol finances and a higher UNI price.
