Fee Tiers
V3 pools support four fee tiers, allowing the market to create pools optimized for different asset types.
Available Tiers
| Fee Tier | Fee Rate | Tick Spacing | Best For |
|---|
| 0.01% | 1 bps | 1 | Stablecoin pairs (e.g., USDC/USDT) |
| 0.05% | 5 bps | 10 | Correlated assets |
| 0.3% | 30 bps | 60 | Most pairs (default) |
| 1% | 100 bps | 200 | Exotic / long-tail pairs |
bps = basis points. 1 bps = 0.01%.
Choosing a Fee Tier
The fee tier affects both the swap cost for traders and the revenue for LPs:
- Lower fees attract more trading volume but pay LPs less per trade
- Higher fees compensate LPs more per trade but may deter volume
Guidelines
| Asset Type | Recommended Tier |
|---|
| Stablecoin ↔ Stablecoin | 0.01% |
| Blue chip ↔ Stablecoin | 0.05% or 0.3% |
| Established tokens | 0.3% |
| New or volatile tokens | 1% |
Tick Spacing
Each fee tier has a fixed tick spacing that determines the granularity of price points where liquidity can be added or removed.
- Lower tick spacing = more precise price ranges but higher gas costs
- Higher tick spacing = less precise ranges but lower gas costs
The tick spacing is directly tied to the fee tier and cannot be configured independently. See Ticks and Ranges for details.
Multiple Pools Per Pair
The same token pair can have multiple V3 pools, one for each fee tier. The routing engine automatically selects the pool(s) with the best execution price for each swap.
For example, KAS/USDC might have:
- A 0.05% pool with deep liquidity for large trades
- A 0.3% pool with moderate liquidity
- A 1% pool for small speculative trades
Liquidity providers choose which pool(s) to provide liquidity to based on their strategy and risk tolerance.
