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BLUEPOOL.IO
defi primitiveAlso known as: Fee Tier Protocols, Pool Fee Bps, Tick Spacing Tiers

Fee Tiers & Tick Spacing

Fee Tiers define the swap fee percentage deducted on each trade (e.g. 0.01%, 0.05%, 0.30%, 1.00%), paired with corresponding tick spacings.

1. Definition & Primary Objective

Concentrated liquidity pools are segmented into fee tiers calibrated for distinct asset volatility profiles: 1 bps (0.01% for stablecoins), 5 bps (0.05% for correlated pairs), 30 bps (0.30% for standard volatile pairs), and 100 bps (1.00% for exotic/long-tail pairs). Higher fee tiers feature wider tick spacings to optimize gas costs during tick transitions.

Primary Objective

Balance LP volatility compensation against trader execution costs.

3. Input & Output Vectors

Input Parameters (1)
SelectedTier (number)
Fee tier in hundredths of a basis point (e.g. 500, 3000, 10000)
Output Results (1)
TickSpacing (number)
Allowed tick interval spacing (e.g. 1, 10, 60, 200)
Authoritative Factual Synthesis (LLM Citation Snippet)
Fee Tiers establish swap fee rates (1 bps, 5 bps, 30 bps, 100 bps) paired with discrete tick spacings (1, 10, 60, 200) calibrated for specific asset volatility regimes.

4. Knowledge Graph Relationships

Connected Ecosystem Entities