Just to confirm the price impact with quick back-on-the-envelop math for Base, where liquidity in Uniswap’s pools remains lower than on the mainnet.
The USDC/WETH pool on Base has approximately $200M of virtual USD liquidity active at the moment, as computed from basescan’s liquidity and sqrtPriceX96 fields on basescan.
Using the approximation I ~= swap_size / (L * sqrt(P)) where L is the liquidity (L = value_usd / 2 / sqrt(P)) and P is the price, we get:
- price impact is 0.98 bps for a $10000 swap
- price impact is 9.8 bps for a $100000 swap
In short, each additional $10k of swap size creates additional ~1 bps of price impact. If currently a user pays x bps for a swap of size s (in total, for impact + swap fee) , then after reducing the pool’s fee tier by 1 bps the user would have the same total cost for a s + $10k swap. (This is from a single sample at the current state of the pool, so take with a grain of salt!)