Why is slippage so low when swapping stablecoins? Don’t worry, your study buddy is here:
Curve later introduced CryptoSwap pools for assets with high price volatility, concentrating liquidity near the current price based on an internal price.
The constant-product formula spreads liquidity across all prices from zero to infinity. For assets that should be exchangeable at a 1:1 rate, most of that liquidity is actually wasted.
I didn’t understand this back then, and I wasted enough money to buy milk tea for several months.
$CRV 0.2649（-3.74%）
Curve later introduced CryptoSwap pools for assets with high price volatility, concentrating liquidity near the current price based on an internal price.
The constant-product formula spreads liquidity across all prices from zero to infinity. For assets that should be exchangeable at a 1:1 rate, most of that liquidity is actually wasted.
I didn’t understand this back then, and I wasted enough money to buy milk tea for several months.
$CRV 0.2649（-3.74%）