Types of Wavelength Liquidity Pools
Pools are the fundamental building blocks of Wavelength; they are smart contracts that define how traders can swap between tokens on the platform. While other exchanges have constrained parameters, Wavelength can accommodate pools of any composition and underlying proportions. Their extensive flexibility makes the Pools unique from those found on other protocols.
Weighted Pools are highly versatile and configurable pools that use a modification of the standard CPMM algorithm popularised by early DEXs (Uniswap, for example).
Designed for general cases, including tokens that don't necessarily have price correlation (ex. WBTC/VLX).
For certain assets that are expected to trade near parity throughout (e.g., different varieties of stablecoins or synthetics), a more efficient design is StableSwap AMM, as advocated by Curve. These pools allow for greater trading of these assets before significant price impact occurs.