‘Extract far less’ – Uniswap CEO backs Trade Pools’ 0.25% fee

Uniswap has dismissed claims that its 4x cheaper token launchpad called ‘ Trade Pools’ is designed to “extract” most value from users. 

The new launchpad set a 0.25% trading fee compared to 1% charged by some players.

For some critics, Pools was all out to undercut other memecioin lauchpads on Robinhood, such as Pons. But they wondered if Uniswap could commit crimes and extract value, an infamous trend synonymous with other venues like PumpFun. 

Responding to the critics, Uniswap CEO Hayden Adams said, 

This mindset assumes people want to use highly extractive, shady platforms. We’re making the opposite bet – that users will prefer quality tech + a level playing field.

Adams added,

0.25% fee tier pools will work well even as they grow – and extract far less from the traders using the platform.

Initially, Uniswap unveiled Uniswap Launches, aggregating various token launchpads into a single interface. It was first released on Robinhood, given its spike in speculative interest, and other chains were to be added later. Some top launchpads like Pons, Flap, and Bankr were featured. 

But the DEX went beyond just an aggregated interface and debuted a rival and 4x cheaper launchpad. 

Will Uniswap help Robinhood surpass Solana and BNB Chain?  

Robinhood Chain debuted last month, and Uniswap traction spiked as memecoin mania exploded on the new L2. Now in its second month, Uniswap is moving to consolidate its market share in the new chain with a launchpad.

In just two days, Uniswap’s Pools Trade has become the leading token launchpad on the L2. According to Tom Wan, head of data at Entropy Advisors, Trade Pools is a strategic bet by the DEX. 

I read Trade Pools as a strategic push to drive usage of Uniswap v4. Most launchpads today graduate tokens into v3, while Trade Pools routes directly into v4.

Wan cited the Uniswap V4 trading volumes in the past two days. The volume has surged 2.4x from $100M before Trade Pools to over $237M after the launchpad. 

When zoomed out, the traction is also helping Robinhood Chain to compete. On-chain data showed that the new L2 had nearly $600M in launchpad volume last week, surpassing BNB Chain’s $400M. 

Solana still topped with about $3B thanks to its massive launchpads, including PumpFun, Bonkfun, and others. 

That said, the Trade Pools debut saw the UNI price pump by 5% to $4.19. However, the token was still cooling off from July’s recovery, partly driven by Robinhood traction and fee switch activations. 

Final Summary

• Uniswap CEO Hayden Adams defended the cheaper token launchpad, Trade Pools, saying that users want a level playing field 
• Uniswap is increasingly boosting Robinhood Chain’s memecoin activity to challenge Solana and BNB Chain.