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Uniswap protocol CEO Hayden Adams has come forward to refute claims circulating on X that accuse the decentralized exchange of demanding hefty fees for protocol deployments. Adams took to the platform on September 12 to clarify that Uniswap Labs and the Uniswap Foundation do not charge for deployments.
The response came in the wake of allegations made by user @wagmialexander, who claimed Uniswap was asking for $20 million to deploy the protocol. Addressing the allegations directly, Adams explained that all protocol deployments on the platform are governed through community-driven votes.
He emphasized that while deployments on new blockchain chains do involve effort, no financial charge is requested by Uniswap Labs or the Foundation. He further clarified that the requirements for integrating protocol on additional chains depend on the technical complexity and resources necessary for each case.
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Back Story
The allegations originated after Millicent Labs co-founder, Kene Ezeji-Okoye, tweeted that Uniswap charges $10 million for protocol deployments, plus another $10 million in incentives for trading carbon credits. The claim sparked debate among crypto users on the platform, leading to Adams’ prompt clarification.
Uniswap’s open-source protocol, primarily used for providing liquidity and trading ERC20 tokens on Ethereum, has always prided itself on community governance and transparency. Developed by Uniswap Labs, the protocol relies on its decentralized nature, with governance votes deciding key decisions.
Regulatory Scrutiny
This isn’t the first time Uniswap has faced public controversy. Recently, the decentralized finance (DeFi) giant found itself entangled in a regulatory dispute with the U.S. Commodity Futures Trading Commission (CFTC).
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On September 4, the CFTC brought charges against Uniswap Labs for offering leveraged cryptocurrency trading to U.S. retail investors without appropriate licensing. Uniswap Labs agreed to settle the matter, paying a $175,000 civil penalty and agreeing to discontinue its practices that violated the Commodity Exchange Act.
Moreover, earlier this year, the U.S. Securities and Exchange Commission (SEC) also accused the company of operating an unregistered securities exchange. In its defense, the protocol asserted that it is a software company, not a traditional exchange, and that it operates under the principles of market innovation.
Despite these hurdles, Uniswap remains a leading force in the DeFi space, navigating both internal governance challenges and external regulatory scrutiny. As per the data by DeFiLlama, it currently boasts about $4.35 billion in total value locked (TVL).
