Interesting, and kinda fits @yieldbasis narrative. Bullish on fee switch
UNISWAP'S FEE SWITCH: WHO BENEFITS? 👀
Uniswap just announced fee switches and token buybacks.
And guess who loved the news?
@newmichwill The CEO of Curve
@wagmiAlexander The CEO of Dromos
Not because it’s a smart move. But because it’s so bad, it actually gives them an edge.
Here’s the issue:
Buybacks and burns may help $UNI holders…
…but they directly hurt LPs.
> LPs already deal with impermanent loss
> Now they’ll get taxed by the protocol too
Net result: even less incentive to provide liquidity.
DEX TVL is still miles below bull market levels for a reason: Providing liquidity often means losing money.
Adding fees on top of that? It’s shooting yourself in the foot.
@CurveFinance and @DromosLabs are laughing because this opens the door for them to gain market share.
And honestly, they’re not wrong.
Uniswap might offset it through its aggregator model.
But if they keep draining LP value like this, it’s hard to see them staying dominant.
Protocol revenue is great, until your users walk.
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