In the URP Asset, set LODThe Level Of Detail (LOD) technique is an optimization that reduces the number of triangles that Unity has to render for a GameObject when its distance from the Camera increases. More info
See in Glossary Cross Fade Dithering Type to 2x2 Stencil to make Unity use stencil testing instead of alpha testing to fade between different LOD levels. Unity removes the _LOD_FADE_CROSSFADE keyword used in most default URP shaders, which reduces the number of shaderA program that runs on the GPU. More info
See in Glossary variants by around 50%. However, LOD calculations need slightly more processing time on the GPU.
Unity falls back to alpha testing if you disable the render graph system or enable GPU instancing.
This setting might not work correctly if you enable Stencil in the Overrides section of the Universal Renderer asset.