Uniswap's cumulative front-end fees exceed $1 million within a month

Uniswap UNI -4.73% Labs, the developer firm behind the Uniswap protocol, has seen its cumulative front-end fees exceed the $1 million mark within a month of their introduction.

The protocol enacted a 0.15% fee on Oct. 17, affecting transactions made by users on its web interface and wallet app with assets such as ether, wrapped bitcoin and a suite of stablecoins, including USDC and DAI.

This new fee structure stands apart from the longstanding 0.3% protocol fee that Uniswap has charged its users, which serves as an incentive by being distributed among liquidity providers. In contrast, the newly accrued front-end fees are directed only to Uniswap Labs, marking a fresh revenue stream for the firm.

Users looking to avoid the front-end fee have the option to utilize alternative interfaces such as 1inch or Matcha — though it is worth noting that these platforms may offer different fee models.

In the last 25 days since its introduction, the front-end has accumulated a total of $1.1 million, according to The Block dashboard. This is an average revenue of $44,000 per day, which amounts to an annualized revenue of over $16 million.

In the last day, more than 16% of all Uniswap trading volume was done via the front-end, data from Dune Analytics shows.