Stable Token AMMs

List of stable token AMMs on Shell


One of the most important categories of AMMs are those designed for trading pairs with stable exchange rates ("stablecoins"), such as DAI, USDC, or USDT. Because the value of such a token is pegged to a stable unit like the US dollar, stablecoins are common tokens that many people trust for everyday transactions on blockchains. However, like any currency, stablecoins still fluctuate in value on a very small scale, usually on the order of hundredths of a basis point.

Shell's initial stablecoin-to-stablecoin pools are designed with these fluctuations in mind. We concentrate the liquidity of the pool over the range of common price fluctuations. Many of the pools, like the DAI+USDC pool, were designed such that when the pool's liquidity is split 50-50 across both tokens, the swap rate is the median rate over the last year.

Interested to read more about how these pools were designed? Learn how to construct an AMM using Proteus.






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