[RFC] Proposal to active 2, 3, 4 bps fee-tiers on Base

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Thanks for the great, detailed analysis!

You nicely demonstrate the motivation with the example of the 4bp Aerodrome pool. More generally, I understand the motivation as:

Add more fee tiers to give LPs more fine-grained choices to compete with other AMM pools. (Please correct me if I’m wrong.)

I’d like to add two points on this:

  1. If we believe adding more fine-grained fee-tiers is good, should this be done across the full range of fee tiers?
    The current fee tiers of 1, 5, 30, 100 are relatively evenly spaced out with ~4-6x increases between them. Just as you’re suggesting to add new tiers between 1 and 5 bps, maybe the same should be done, for instance, between 5 and 30 bps with new 10 and 20 bp tiers.
    A possible set of fee tiers in the current fee tier range could be: 1, 2, 3, 4, 5, 10, 20, 30, 50, 100 bps. What are your thoughts on this?

  2. Regarding the possible liquidity fragmentation, I wonder how much empirical evidence there is on this statement:

However, we believe that liquidity providers will respond quickly to updates of the fee. This will overcome the effects from liquidity fragmentation.

For instance, I believe liquidity has often consistently been split between 5bp and 30bp pools, even though they are a lot farther apart than 2,3,4 bp pools.

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