Uniswap founders question Aerodrome's revenue model, arguing that "collecting 100% of LP fees and then returning them in tokens" creates an illusion of revenue and is meaningless.

Uniswap founder Hayden Adams and Aerodrome CEO Alexander have clashed over LP fee revenue models. Adams stated on the X platform that Alexander's claim that his platform's "revenue" is five times that of UniSwap is misleading. He argued that Aerodrome collects 100% of LP fees and returns them to LPs through token issuance or liquidity incentives. This method makes the revenue figures appear large but does not represent sustainable fees, creating an illusion of revenue and being meaningless. If Uniswap collected 100% of LP fees and returned them in tokens, its reported "fee revenue" could reach $1 billion. However, Uniswap's protocol fee design is different; a portion of the exchange fees goes to the protocol, but the majority still goes directly to LPs, aiming for long-term sustainability rather than inflated surface figures.