Uniswap Interface Fees Will Be Refunded $8 Million By PancakeSwap

Key Points:

• PancakeSwap is reimbursing up to $8 million in fees for traders matching their Uniswap v3 volume on PancakeSwap v3 from May 16 to August 15, 2024.
• This follows the Uniswap interface fee increase to 0.25% for most swaps, which received mixed reactions.
• Traders must have held at least $5,000 in WBTC and/or WETH pairs on Uniswap’s Ethereum platform between January 1 and March 31, 2024, to qualify.

Decentralized exchange PancakeSwap has launched a reimbursement campaign to cover up to $8 million in fees that traders have incurred on its competitor, Uniswap.

PancakeSwap Launches $8 Million Fee Reimbursement Campaign

This initiative targets traders who match their Uniswap v3 volume on PancakeSwap v3 between May 16 and August 15, 2024, offering them a full refund of their Uniswap interface fees.

The campaign follows Uniswap Labs‘ recent decision to increase the Uniswap interface fee from 0.15% to 0.25% for most swaps, which took effect in April. This fee hike applies to almost all trading pairs, except for certain stablecoin and wrapped token pairs, across all supported Uniswap networks.

While the new Uniswap interface fee policy, effective from October 17, 2023, aims to boost DEX’s revenue, it has met mixed reactions from the community. Some users are displeased with the additional costs, while others see it as a necessary step for sustainable development.

Eligibility Criteria for Refunding Uniswap Interface Fees

To qualify for PancakeSwap’s refund, traders must have held at least $5,000 in wrapped Bitcoin (WBTC) and/or wrapped Ethereum (WETH) pairs traded on Uniswap’s Ethereum platform between January 1 and March 31, 2024. Eligible users can verify their campaign eligibility on PancakeSwap’s Dune dashboard and must complete a form to claim their reimbursement.

This strategic move by PancakeSwap seeks to attract Uniswap traders by alleviating their financial burden, potentially increasing PancakeSwap’s user base and trading volume. As competition intensifies among decentralized exchanges, such incentives could be crucial in shaping trader preferences and market dynamics.