Liquidity providers deposit funds into Uniswap and receive trading fees from traders (supply-side fees).

Uniswap is a non-custodial exchange protocol built on Ethereum. Uniswap was founded by Hayden Adams and launched in 2018.

UNI tokenholders own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Uniswap's investors include Paradigm, a16z, USV, etc.

governance

github

twitter

discord

etherscan

website

Exchanges (DEX)

Uniswap

# Uniswap Cost of revenue Methodology

## 1. Overview

Cost of revenue is measured as the expenses incurred by Uniswap to operate its Layer 2 network, Unichain. These expenses are represented by the fees allocated to external infrastructure partners, specifically through the revenue-sharing agreement with Optimism. Prior to the launch of the Uniswap Validation Network (UVN), all sequencer fees are classified as cost of revenue. Following the transition date of December 27, 2025, the cost of revenue is calculated as the 15% fee split directed to Optimism, while the remaining sequencer fees are routed to a burn mechanism.

## 2. Data sources

- **Blockchain events**: Transaction execution data, including gas used, L1 gas used, L1 gas price, and L1 fee scalar from transaction receipts, covering Unichain
- **External data**: End-of-day price feeds for native gas assets

## 3. Step-by-step calculation

### Component A: Gas fee calculation

- **Purpose**: Calculate the total gas fees paid for transactions on Unichain
- **Logic**: L1 and L2 gas fees are calculated from transaction receipts. L2 gas fees are calculated by multiplying gas used by the gas price, and L1 gas fees are calculated by multiplying L1 gas used, L1 gas price, and the L1 fee scalar. Both fee components are normalized by decimal precision, summed to determine total fees, and converted to USD using end-of-day price feeds for the native gas asset.
- **Key fields**: `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee_scalar`

### Component B: Cost of revenue allocation

- **Purpose**: Determine the cost of revenue based on the protocol's operational phase
- **Logic**: For transactions occurring before December 27, 2025, the cost of revenue is set equal to 100% of the calculated gas fees, reflecting that all sequencer fees are directed to the sequencer hosted by Uniswap Labs. For transactions occurring on or after December 27, 2025, a 15% fee split is applied to the gas fees to represent the revenue-sharing agreement with Optimism, while the remaining fees are excluded as they are routed to the burn mechanism.
- **Key fields**: `block_timestamp`, `fees`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Expenses paid to third parties to deliver core service output.

UniswapUNI

Cost of revenue

Cost of revenue

Competitive landscape

Chain breakdown