Dynamic fees on Uniswap explained
7 November 2026
Most pools charge the same fee on every trade, for example 0.3%. A pool with a dynamic fee lets its hook choose the fee, so it can change from one trade to the next.
Why use one
- Pay liquidity providers more when it's risky. When the price swings hard, providers lose more to traders who know where the price is going. A higher fee in those moments compensates them.
- Cheaper trading when it's calm, which attracts more volume.
- Launch protection. A high fee in the first minutes makes sniping expensive, then drops to normal.
How it works
A pool is marked as dynamic-fee when it's created. Its hook then sets the fee, either before each trade or whenever its logic decides. The rules for how the fee moves are in the hook's code, so they're as fixed as the hook itself.
Similar effects without a dynamic fee
The UniHooks builder offers rules that act like smart fees on top of a normal fixed fee: a Launch fee during the anti-snipe window, a Volatility fee on trades that move the price a lot, and a Sandwich guard. All three pay liquidity providers.
How to spot them
On UniHooks, a hook page shows whether its pools use a dynamic fee, and the Explore page lets you filter hooks by what they can do.