Fee Tiers

In our concentrated liquidity protocol, multiple pools can be created for the same token pair, each with different fee tiers. Currently, the protocol supports six tiers: 0.01%, 0.05%, 0.1%, 0.25%, 1%, and 2%.

This multi-tier structure allows the protocol to better accommodate the needs of various trading pairs while encouraging the market to naturally determine the most efficient liquidity distribution. As a result, both liquidity providers (LPs) and traders benefit from greater flexibility.

It can be expected that different categories of assets will gravitate toward specific fee levels based on their characteristics and the dynamics between liquidity supply and trading demand. For example, low-volatility assets such as stablecoins are more likely to concentrate in pools with the lowest fee tier, as LPs face minimal risk and traders prefer near 1:1 execution. Conversely, high-volatility or less frequently traded assets are more likely to align with higher fee tiers, since LPs require greater compensation for bearing the additional risk of holding such assets.