Can the fee rules change even if the pool hasn’t moved?

A pool staying in the same place doesn’t mean its fee rules will remain forever at the version you first read. If you follow the $UNI ecosystem, this distinction is worth remembering.

In its October 14 introduction to the VolatilePair Hook, Uniswap Labs explained that this additional fee logic, designed for pools trading volatile assets, allows Uniswap governance to upgrade the parameters and fee rules without requiring the pool to migrate. The initial trading pair announced was ETH/USDC.

There are two changes to distinguish: one is recalculating the fee for a given trade based on market conditions under the existing rules; the other is governance upgrading the rules used for the calculation. The first is like calculating today’s bill using the same price list; the second is like changing how the price list is calculated.

Therefore, when preparing to use the same pool again, you should check not only the current quote but also the current fee information and any governance updates that have been implemented. Past tutorials can explain the rules at the time, but the fact that “the pool hasn’t changed” alone doesn’t mean they remain valid indefinitely.

An announcement that an upgrade is possible doesn’t mean this article has found that a specific fee change has just taken place, nor does it guarantee that fees will always be lower after the upgrade. Liquidity providers and traders are affected in different ways, so the actual terms still need to be checked; this article does not calculate returns or recommend depositing funds.

#Uniswap #DeFi

Source: https://blog.uniswap.org/volatilepair-hook-pricing-both-sides-of-the-trade