Understanding Pool Fee Tiers

Uniswap V3 introduced multiple fee tiers: 0.01%, 0.05%, and 0.30%. This allows pools to be optimized for different asset types. Stablecoin pairs typically use the 0.05% tier, while volatile assets use the standard 0.30% tier. The new 0.01% tier is designed for super-stable pairs with microscopic price movements. Choosing the correct tier is essential for attracting volume and maximizing your earnings as a provider. Selecting the right Uniswap Liquidity Pools fee tier is a fundamental strategic decision.