By increasing its trading costs from 0.15% to 0.25%, Uniswap, a decentralized exchange, hopes to sufficiently withstand legal challenges related to BitClout from the Securities and Exchange Commission (SEC). The money that has been raised will be used to cover future operating costs and any associated legal fees.
The increase will be felt most in some transactions, but not in stablecoin-to-stablecoin exchanges of comparable assets or in the wrapping and unwrapping of WETH. However, customers will need to use different interfaces if they want to get around the problem of increased prices. In this scenario, fees for transactions carried out on backed Layer 2 networks and the mainnet will also apply.
Fee increases occur when the SEC sends out a Wells notice, or probable enforcement duty. Uniswap used this as a means of bolstering its cash reserves. With a lawsuit hovering over it like a sword, targeted funding is desperately needed right now. The mechanism is aware of the operational and budgetary challenges that are inextricably linked to elements concerning regulatory agencies.
According to Blockwork Research analyst Dan Smith, the purpose of the rising interface fee is to support Uniswap Labs. The money will assist in paying for both legal bills and the production of new goods. According to him, consumers need to find an aggregator that will charge lower prices.
The platform’s resolve to upholding the integrity of the decentralized finance (DeFi) industry is demonstrated by Uniswap’s plan to defend itself in all SEC actions. Ripple is well-known for having spent more than $200 million defending itself against an SEC lawsuit.
The corporation disclosed that it intended to use the fees’ proceeds to increase trading volume overall and use the additional revenue to help cover its litigation costs.
