Uniswap V3 liquidity providers – earn 50% more by adding liquidity to a 0.05% pool instead of a 0.3% Uniswap v3 pool

It’s super simple – the fees/reserves ratio for 0.05% pools over the past month have consistently been about 50% higher for liquidity providers in USDC/ETH, WBTC/ETH, and DAI/ETH than the fees/reserves ratio for the 0.3% version of the same pools.

Obviously, any Uniswap user would rather pay 0.05% instead of a 0.3% fee, but a month ago these pools had very low liquidity and resulted in a major price impact for large swaps. Now they’ve grown to about 1/4 of the original 0.3% pools TVL and more and more whales are starting to use them.

As a result, the daily traded volumes for 0.05% pairs are TWICE higher than the traded volumes for 0.3% pairs and they’re still climbing. Check out the volumes & TVL on Uniswap analytics: [ETH/USDC 0.05%](

At the same time, volume & total generated fees in 0.3% pairs have been in decline for a month: [Uniswap Analytics ETH/USDC 0.3%](


Here are some stats regarding the profits you can expect in **0.05%** vs 0.3%:

||TVL|24H fees|Profit / 1MM invested|
|[ETH/USDC 0.3%](|$272,000,000|$313,000|$1150|
|[**ETH/USDC 0.05%**](|**$69,000,000**|**$100,000**|**$1450**|
|[ETH/DAI 0.3%](|$37,000,000|$43,000|$1162|
|[**ETH/DAI 0.05%**](|**$12,000,000**|**$20,000**|**$1666**|
|[BTC/ETH 0.3%](|$173,000,000|$93,000|$537|
|[**BTC/ETH 0.05%**](|**$16,000,000**|**$13,000**|**$812**|


In my opinion, a major reason why this easy to take advantage of inefficiency has stayed for so long is because, as far as I know, many dashboards (APY vision & competitors) do not include the 0.05% pools in their calculations.

What do you think?

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  1. Profit in 0.05% pools indeed stays high, but this is just because liquidity is currently low compared to 0.3% pools. As soon as more LPs invest into 0.05% pools, profit will be diluted. It is a very interesting economical experiment going on right now on uniswap.

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