I’m a voter with Blockchain at Berkeley. All thoughts are my own and not representative of the organization as a whole.
Market share, revenue capture, and price stability are all important for this pool in particular. So how can Uniswap compete with Aerodrome? Aerodrome lowers fees and uses Aero tokens as additional incentive. In this proposal, the community discusses the ramifications of allowing more competitive fee tiers through fractionalization of the pool.
Since Base is itself still a relatively nascent market, I believe this experiment would provide valuable data to determine the viability of lowering fee tiers on other markets as well, as well as the stickiness of DeFi users on Base. As well, Base does not provide an oversized proportion of Uniswap’s volume or revenue, so the risk of any price instability leading to decreased usage is palatable. However, the community should treat this as an experiment and just that; this is not the beginning of a race to the bottom against Aerodrome.
Through this proposal, the community has also discussed the differences in trade sizes between Aerodrome and Uni on Base, the greater number of stakeholders for Uni (like oracles which use Uni), and arbitrage loss. These are all important points to further discuss as this experiment goes on.
Blockchain at Berkeley voted yes on this proposal.