What Are Uniswap V3 Pool Fee Tiers?
Sphere Finance Sphere Finance
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 Published On Jan 23, 2023

When it comes to Uniswap v3, liquidity providers must set a specific price range for their liquidity in order to earn swap fees from swap volume.

In the most recent video, I talked about how active liquidity management for Uniswap V3 is the process of regularly rebalancing LPs to reset liquidity within the active price range to maximize fee revenue for liquidity providers, and how this Uniswap v3 optimization and automation will become readily available for all users with the launch of Dyson.

One of the key aspects of Uniswap v3 liquidity management that I did not yet mention is the fee structure for swaps. Naturally, this is important because the higher the swap fee, the more revenue for liquidity providers when considering the same swap volume.

Uniswap v3 has four main fee tiers: 0.01%, 0.05%, 0.3%, and 1%. There are a lot of nuances as to why these different fee tiers exist, and each fee tier serves a specific purpose within Uniswap v3 for swappers and liquidity providers.

References:
https://docs.uniswap.org/concepts/pro...
https://www.investopedia.com/terms/b/...
https://uniswap.org/blog/uniswap-v3#f...
https://app.uniswap.org/#/?intro=true
  / introducing-dyson-yield-farming-made-easy  
https://academy.binance.com/en/articl...
https://whiteboardcrypto.com/imperman...
https://www.investopedia.com/terms/s/...

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