When asked, “Why is slippage so low when swapping one stablecoin for another?”
I usually answer like this: Curve launched its own stablecoin, crvUSD, which uses a soft liquidation mechanism called LLAMMA. The constant product model spreads liquidity across all prices from zero to infinity. For assets that should already be trading at a 1:1 ratio, most of that liquidity is practically useless.
$CRV 0.2619（-3.61%）
In what context did people first come to understand this?
I usually answer like this: Curve launched its own stablecoin, crvUSD, which uses a soft liquidation mechanism called LLAMMA. The constant product model spreads liquidity across all prices from zero to infinity. For assets that should already be trading at a 1:1 ratio, most of that liquidity is practically useless.
$CRV 0.2619（-3.61%）
In what context did people first come to understand this?