Sundaeswap testnet on liquidity pool

When I am trying to using the SundaeSwap testnet for the liquidity pool to provide liquidity, there are showing 3 options of " Select Liquidity Provider Fee" in the Provide Liquidity function, which has 3 different fees such as below:

  1. 0.05% Fee, Best tier for stable pairs.
  2. 0.3% Fee, Best tier for most pairs.
  3. 1% Fee, Best tier for exotic pairs.

what is the difference between these 3? why not just have one fee?
Does any one know?
Thank you