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Uniswap LPs face up to 33% fee cuts, sparking concerns and possible migration to rivals like Aerodrome.

Market News
29 Jul 2026
AMBCrypto
View Source
Bearish
Uniswap LPs face up to 33% fee cuts, sparking concerns and possible migration to rivals like Aerodrome.

Uniswap recently activated a fee switch across its Robinhood Chain and other V4 networks, cutting liquidity providers' (LPs) share of fees by up to 33% to fund UNI buybacks and burns. This change has alarmed many LPs who argue the new fee structure makes providing liquidity unprofitable, especially for V2 and V3 versions with up to 25% cuts. Some experts predict LPs will migrate to competing platforms like Aerodrome Finance. Despite the fee switch receiving 97% governance approval, the long-term impact on Uniswap's competitiveness and LP retention remains uncertain.

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