WStable Pools on STON.fi: Weighted Stable Swap Explained
Not every DeFi pair needs a 50/50 AMM. Some assets are closely correlated. A liquid staking token can track its underlying asset while its value changes as rewards accumulate.
WStable, or Weighted Stable Swap (WSS), is STON.fi’s pool model for this use case. It combines StableSwap style pricing with custom weights and a relative rate, allowing liquidity to reflect an evolving relationship rather than a fixed 1:1 ratio.
How WStable Works
A constant product AMM can create price impact on larger trades. StableSwap style pricing flattens the curve around the relationship between correlated assets. WStable adds flexibility through unequal weights and a rate.
Key parameters now:
• amp = controls curve amplification.
• rate = represents the relative exchange relationship.
• w0 = defines one asset’s weight.
• rate_setter = manages the rate.
Why Weights Matter
Correlated assets do not always require equal liquidity. A WStable pool can use a 75%/25% structure, concentrating more liquidity in one asset while retaining the other.
The tsTON Example
STON.fi introduced WStable with a pool pairing tsTON and the native asset, later renamed Gram ( $GRAM ). STON.fi describes it as 75% tsTON and 25% GRAM. It prioritizes the yield-bearing asset while supporting swaps.
WStable vs. WCPI
Both use weights, but their pricing models differ. WCPI means Weighted Constant Product Invariant: weights modify constant product pricing. WStable uses StableSwap style pricing with weights and a relative rate for correlated assets.
What Users Should Know
WStable can improve capital efficiency and reduce price impact around the relationship, but it does not remove risk. Pool depth, trade size, slippage, correlation changes, rate accuracy, impermanent loss and smart contract risk still matter.
Ultimately, WStable is an AMM for correlated assets whose relationship can evolve without requiring a 50/50 structure.
#BTC Price Analysis# $BTC
Not every DeFi pair needs a 50/50 AMM. Some assets are closely correlated. A liquid staking token can track its underlying asset while its value changes as rewards accumulate.
WStable, or Weighted Stable Swap (WSS), is STON.fi’s pool model for this use case. It combines StableSwap style pricing with custom weights and a relative rate, allowing liquidity to reflect an evolving relationship rather than a fixed 1:1 ratio.
How WStable Works
A constant product AMM can create price impact on larger trades. StableSwap style pricing flattens the curve around the relationship between correlated assets. WStable adds flexibility through unequal weights and a rate.
Key parameters now:
• amp = controls curve amplification.
• rate = represents the relative exchange relationship.
• w0 = defines one asset’s weight.
• rate_setter = manages the rate.
Why Weights Matter
Correlated assets do not always require equal liquidity. A WStable pool can use a 75%/25% structure, concentrating more liquidity in one asset while retaining the other.
The tsTON Example
STON.fi introduced WStable with a pool pairing tsTON and the native asset, later renamed Gram ( $GRAM ). STON.fi describes it as 75% tsTON and 25% GRAM. It prioritizes the yield-bearing asset while supporting swaps.
WStable vs. WCPI
Both use weights, but their pricing models differ. WCPI means Weighted Constant Product Invariant: weights modify constant product pricing. WStable uses StableSwap style pricing with weights and a relative rate for correlated assets.
What Users Should Know
WStable can improve capital efficiency and reduce price impact around the relationship, but it does not remove risk. Pool depth, trade size, slippage, correlation changes, rate accuracy, impermanent loss and smart contract risk still matter.
Ultimately, WStable is an AMM for correlated assets whose relationship can evolve without requiring a 50/50 structure.
#BTC Price Analysis# $BTC
