What are Stable Pools?

What are Stable Pools?

For certain assets that are expected to consistently trade at near parity (e.g. different varieties of stablecoins or synthetics) a more efficient design is the StableSwap AMM as popularized by Curve.

Stable Pools allow for larger trades of these assets before encountering significant price impact.

Stable Pools have an higher risk if the assets used are not really stable and can lose their parity, this would make the liquidity providers hold a much bigger amount of the depeged token than the stable.(per ex. u deposit 70-30, usd x and usd y if usd x loses peg u can end up holding 95-5).

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