Uniswap v3 introduces flexible fees, allowing liquidity providers (LPs) to choose from multiple fee tiers when creating liquidity positions. This feature provides LPs with greater control over their revenue streams and risk exposure.

Key aspects of flexible fees in Uniswap v3:

- Multiple fee tiers: LPs can select from a range of fee tiers, each with a different fee rate (e.g., 0.05%, 0.10%, 0.20%).

- Customizable: LPs can choose the fee tier that best aligns with their market views and risk tolerance.

- Governance-controlled: The Uniswap governance system can add or remove fee tiers as needed, ensuring the protocol remains competitive and aligned with market conditions.

- Incentivizes liquidity provision: Flexible fees attract LPs with different risk appetites, encouraging them to provide liquidity and enhance market depth.

By introducing flexible fees, Uniswap v3 creates a more inclusive and dynamic liquidity provision landscape, benefiting both LPs and traders.