Fees are reaching $5 to $6mn per day!
What I always wondered about these fees that are generated on Uniswap is how they really matter for the token since they fully go to liquidity providers who risk impermanent loss. At least that is how I understand it. If they turn on protocol fees, isn't there a risk that many will just move to a platform where there are no protocol fees ?
I dislike Meme CoinsI used to be the same but really flipped my mindset after 7+ years in crypto seeing the biggest garbage always pump the most. If I would have the bet, it would be on memecoins outperforming everything this cycle. That said, I still prefer to keep most in stuff that actually has fundamentals and less risk.
This is an extremely fair point. I have to research exactly if some part of these fees is going back to the protocol and/or Uniswap team. I believe they had implemented this to sustain long term growth and make it attractive to own $UNI tokens.
There was a risk to do that back then but the app is now such at the center of all DeFi apps that it might have the size to still attract liquidity providers despite this extra "fee"
Thanks for this great comment. I appreciate your thoughts.