Uniswap has launched a system that allows it to collect protocol fees from trades executed through competing decentralised exchanges, with the revenue being used to burn its UNI token.
The decentralised exchange (DEX) platform introduced Aggregator Hooks on 22 October 2026, connecting seven external liquidity sources directly to Uniswap v4. The integration covers Ethereum mainnet and the Layer 2 networks Base and Robinhood Chain, where the connected sources account for more than 90% of decentralised exchange activity.
Under the new system, Uniswap can earn fees even when another platform provides the liquidity for a trade. That means activity on rival exchanges can contribute to the mechanism that removes UNI from circulation.
“Uniswap v4 is now an aggregator,” Uniswap Labs said on Thursday as it announced the upgrade. The company said Uniswap had processed more than $4.5 trillion in cumulative swaps, while acknowledging that liquidity continues to develop across other platforms.
“Aggregator Hooks bring it in, benefiting the protocol,” Uniswap Labs added.
The technology compares prices automatically between Uniswap and connected exchanges. Those platforms include Curve, Fluid, Pancakeswap V3 and Slipstream, while three other liquidity sources are also part of the seven-source integration.
Prices are refreshed every block, and each trade is completed in a single transaction. “The whole route settles in a single transaction, with nothing new to approve,” the company said.
The fee arrangement follows Uniswap’s UNIfication initiative, which was approved in December 2025. That plan activated protocol fees and directed the resulting revenue towards UNI burns.
Fees collected under the mechanism are stored in TokenJar contracts. The Firepit system requires UNI to be destroyed before those assets can be withdrawn. UNIfication also approved a one-time burn of 100 million UNI from Uniswap’s treasury.
“Outside sources become v4 pools, and swaps routed through them pay protocol fees, contributing to UNI burn,” Uniswap Labs said.
Aggregator Hooks are already available through Uniswap’s Web App and API. The company said further networks and liquidity sources are planned.
For the DEX platforms supplying liquidity, the arrangement offers the possibility of attracting more trading volume from Uniswap users. At the same time, however, the protocol fees generated by those trades flow towards the UNI-burning system of a competing platform.
