Uniswap raises its trading fees from 0.15% to 0.25%

Uniswap, a decentralized exchange, intends to raise its trading fees from 0.15% to 0.25% to adequately stand up to certain legal matters pertaining to BitClout from the Securities and Exchange Commission (SEC). The raised amount accrued will go towards offering future funding for the continuing functioning and the legal expenses that will be incurred.

Certain transactions will bear the brunt of the rise, but stablecoin-to-stablecoin swaps of similar assets and wrapping and unwrapping of WETH will be spared. Yet, users who intend to beat the raised fees issue will be required to utilize separate interfaces. In this case, fees will also exist for transactions done on the mainnet and backed Layer 2 networks.

Raising fees follows the coming in of a Wells notice from the SEC, which stands for probable enforcement obligations. This was Uniswap’s way of strengthening its financial reserves. With Damoceles’ sword dangling on its head in the form of a lawsuit, focused funding is the absolute need of the hour. The mechanism understands the financial and functioning hurdles that go hand in hand with factors related to regulatory bodies.

In the words of an analyst at Blockwork Research, Dan Smith, the increasing interface fee has been created to contribute towards Uniswap Labs. The funds will help support the creation of fresh items and legal fees. In his viewpoint, users must identify an aggregator that will charge lesser fees.

The intention of Uniswap to take on all lawsuits issued by the SEC speaks volumes about the platform’s commitment to maintaining the integrity of the decentralized finance (DeFi) space. As a befitting case in point, Ripple is known to have spent over $200 million on its battle against an SEC lawsuit.

The company divulged its intention of utilizing the money from the fees to raise the overall trading volume and, with the added earnings, pitch in towards its legal expenses.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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