V3 AMMs feature a dynamic fee structure, adjusting fees based on each pool's market conditions for enhanced flexibility and better alignment of interests between traders and liquidity providers. They offer different fee tiers, including 0.01%, 0.05%, 0.3%, and 1%, allowing liquidity providers to choose a rate that matches their risk tolerance and market strategy. Lower fee tiers are typically suited for high-volume, low-volatility pools, while higher tiers are preferable for pools with lower volumes or higher volatility, balancing potential earnings with associated risks.
V3 AMMs feature a dynamic fee structure, adjusting fees based on each pool's market conditions for enhanced flexibility and better alignment of interests between traders and liquidity providers. They offer different fee tiers, including 0.01%, 0.05%, 0.3%, and 1%, allowing liquidity providers to choose a rate that matches their risk tolerance and market strategy. Lower fee tiers are typically suited for high-volume, low-volatility pools, while higher tiers are preferable for pools with lower volumes or higher volatility, balancing potential earnings with associated risks.