Fee tier
A configured trading-fee level used by a pool or exchange mechanism.
In more detail
Some AMMs offer multiple pools for the same pair with different fee tiers. A lower percentage doesn't automatically produce the best trade: available liquidity and price impact also affect the quote. Fee designs differ across protocols and versions, so check the actual pool instead of assuming every AMM has the same menu of fixed tiers.
How you might use it
A router selects a higher-fee pool because its deeper liquidity gives your particular swap a better overall output.
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