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AshSwap uses two algorithms invented by Curve Finance for its liquidity pools.
- Stable-swap algorithm for pegged assets
- Concentrated liquidity with dynamic pegging for volatile assets
This algorithm is designed to exchange pegged assets. The most obvious use case is for stablecoins. This is also designed to accommodate more than two tokens in one pool. Our core pool is one having the three most popular centralized stablecoins - USDC/UDST/BUSD.
Further applications are for different wrapped versions of the same tokens or yield-bearing tokens. Liquid staking tokens and lending tokens are of this type.
Concentrated liquidity pools enhance ers' capital efficiency and the dynamic pegging mechanism reduces the impermanent loss of the liquidity provision for volatile assets.
AshSwap currently has pools powered by this technology on Mainnet:
- and so on
Further research and verification on impermanent loss implications and comparisons with other AMM algorithms are being conducted by the team and will be released in the future.
AshSwap provides 2 types of swap: Aggregator Swap & Legacy Swap
A preview of multiple-route with Dynamic Route Trading
Open-sourced repo of Aggregator:
When users sell/buy too many of the same token, the pool becomes unbalanced. The stable pools are designed to hold the peg event even if the ratio is imbalanced; when LPs withdraw, they will receive tokens in a different ratio, but they will receive about the same amount of underlying token; this ensures your value will remain consistent.
Last modified 29d ago