Stable
AMM suitable for stable 1:1 ratio assets

Overview

Asset pairs that have the same price, for example USD-USDT or DOT-xDOT, will fluctuate less on different transactions using this specific AMM.

Equation

y=(kβˆ—(Aβˆ—k+kβˆ’Aβˆ—x))/(4βˆ—(Aβˆ—k+x))A=0.5+ER0%<=ER<=100y = (k * (A*k + k - A*x)) / (4 * (A*k + x)) \\ A = 0.5 + ER \\ 0\% <= ER <= 100%
Based on the Curve formula simplified to 2 assets, this equation was choose to provide no slippage for any swap amount up to 12% of the pool size and a maximum of 150% slippage for the worst-base scenario where all assets are swapped at once.
As seen above, Parallel's curve is pegged by the current exchange rate or in other words, the higher the exchange rate, the more invariant is the price of the assets.
Last modified 2mo ago
Copy link