[Temp Check] Activate 2, 3, 4 bps fee tiers on Uniswap v3 on Base
Just like the 1 bp fee tier originally proposed 3 years ago by Getty Hill, we propose to additionally add a 2, 3, 4 bps fee tier to Uniswap v3 on Base.
You may question why we are proposing the creation of three new fee tiers when our analysis only focused on 4 bps. There are two reasons for this. For one, Aerodrome is able to adjust fees automatically on Base. We anticipate they may respond by lowering fees below 4 bps and want Uniswap Protocol to allow LPs to move without governance intervention if this happens.
Second, we believe this analysis may be a single case study into a larger finding that the required fee for LPs on L2s may be lower than 5 bps. While Aerodrome highlights the success of a 4 bp fee tier, it’s unclear whether that’s the right market rate. It may be lower.
Lastly, we note that this change should not be blindly repeated on other chains. The community should do further research on the success or failures of this program before executing it on another chain.