In this episode Larry and I chat with Getty Hill about Uniswap Protocol's fee switch. We go into detail about the pros/cons of turning the fee switch on, the process that goes into the decision, and how protocol fees could be used to grow Uniswap long-term.
Follow us on Twitter: @getty_hill |@lsukernik | @derek_hsue
Resources: v2 fees, v3 fees, Adding a 1 basis point fee tier for Uniswap
What are the pro and cons of turning on the protocol fee switch?
Balancing "value accrual" vs. market-share
Lessons from implementing a 1 bp fee tier for UNI pools
Why v2 fees are much simpler to implement than v3
Why the "fee switch" question is not a one-off proposal, but a multi-month effort combining research, implementation, and monitoring.
What kind of new behaviors would turning fees on enable?
Second Order effects on the broader DeFi ecosystem
Other thoughts on Uniswap governance broadly