# \[RFC\] Enable a 1bp fee tier for UniswapV3 on Arbitrum **URL:** \ **Category:** Requests for Comment\ **Created:** [January 26, 2023, 2:48pm UTC](https://gov.uniswap.org/t/rfc-enable-a-1bp-fee-tier-for-uniswapv3-on-arbitrum/20116 "2023-01-26T14:48:47Z")\ **Posts on this page:** 1\ **Showing post:** 5
**Author:** ![GFXlabs](https://sea2.discourse-cdn.com/flex016/user_avatar/gov.uniswap.org/gfxlabs/32/4510_2.png) [@GFXlabs](https://gov.uniswap.org/u/GFXlabs)\ **Post date:** [February 2, 2023, 8:46pm UTC](https://gov.uniswap.org/t/rfc-enable-a-1bp-fee-tier-for-uniswapv3-on-arbitrum/20116/5 "2023-02-02T20:46:32Z")
# [[Temperature Check] Enable 1bp Fee Tier for UniswapV3 on Arbitrum](https://snapshot.org/#/uniswap/proposal/0x15031b68121659b87a3f5e33c303cd517bcbc003d3f60fc82f1299620475bcab) **By GFX Labs & ConsenSys** ## Rationale: This proposal seeks to deploy a 1bp fee tier for UniswapV3 on Arbitrum. This will allow users to trade with lower fees, making it more accessible and competitive with other decentralized exchanges. The optionality of a 1bp fee tier is useful for stable-to-stable swapping and can often be found among the top ten liquidity pools on each of Uniswap’s respective deployments. Since the launch of the 1bp fee tier on mainnet, [Polygon](https://gov.uniswap.org/t/polygon-1bp-fee-tier/16488), and [Optimism](https://gov.uniswap.org/t/deploy-a-1bp-fee-tier-to-uniswapv3-on-optimism/16930), the 1bp fee tier has directly led to growth in Uniswap’s DEX market share and directly competes with stablecoin DEX protocols. ![](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/9/93b683e48c3c9126e4fc7fac00f39b5b0db99ddc.png) [Source](https://dune.com/1a1/DEX-Market-Share-for-Stablecoins) ![](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/4/455c485dd7ef5d45eeff1f0eb0befeb8823efefa.png) [Source](https://dune.com/1a1/DEX-Market-Share-for-Stablecoins) ![](https://us1.discourse-cdn.com/flex016/uploads/uniswap1/original/2X/6/68b257a99df94ae9e4cf33fc308afd9cde95c0e5.png) [Source](https://dune.com/1a1/DEX-Market-Share-for-Stablecoins) Benefits: - Lower fee tiers increase competitiveness and incentivize more user activity. - As liquidity is more concentrated, 1bp pools are more capital efficient, especially for stable-to-stable swaps. - Lower fee tiers can also lead to increased volume and earnings for liquidity providers. ## Why Arbitrum: Favorable outcomes from deploying the 1bp fee tier on all other existing Uniswap v3 deployments make this an uncontroversial upgrade of the Arbitrum deployment. Arbitrum has a thriving ecosystem of DeFi dapps that will benefit from less stable-to-stable friction. The Uniswap deployment on Arbitrum currently has [~200M of TVL and ~160M of volume](https://info.uniswap.org/#/arbitrum/). With Curve’s liquidity bribing mechanism losing efficiency, Uniswap is in a strong position to compete for traders’ flow and LPs’ liquidity by providing more competitive fee tiers. Outlined from the [discussion](https://gov.uniswap.org/t/rfc-enable-a-1bp-fee-tier-for-uniswapv3-on-arbitrum/20116) + additions. ## Proposal Target: [Arbitrum Delayed Inbox](https://etherscan.io/address/0x4dbd4fc535ac27206064b68ffcf827b0a60bab3f#code) Function: createRetryableTicket - To: [Arbitrum UniswapV3 Factory](https://arbiscan.io/address/0x1F98431c8aD98523631AE4a59f267346ea31F984) - l2CallValue: 0 - maxSubmissionCost: 300000000000000 - excessFeeRefundAddress: [Uniswap Timelock](https://etherscan.io/address/0x1a9C8182C09F50C8318d769245beA52c32BE35BC) - callValueRefundAddress: [Uniswap Timelock](https://etherscan.io/address/0x1a9C8182C09F50C8318d769245beA52c32BE35BC) - gasLimt: 200000 - maxFeePerGas: 1000000000 - Data: 0x8a7c195f00000000000000000000000000000000000000000000000000000000000000640000000000000000000000000000000000000000000000000000000000000001 --- _[View the full topic](https://gov.uniswap.org/t/rfc-enable-a-1bp-fee-tier-for-uniswapv3-on-arbitrum/20116)._