Fee tier

A fee tier is the percentage a pool charges on each swap, paid to liquidity providers. Uniswap V3 offers multiple tiers (0.01%, 0.05%, 0.3%, and 1% on Robinhood Chain); higher tiers suit more volatile pairs, lower tiers suit stable, high-volume pairs.

Choosing a fee tier is a balance: a higher fee earns more per trade but usually sees less volume, while a lower fee earns less per trade but on stable pairs can capture far more volume. Each tier is a separate pool with its own liquidity and tick spacing.