Why do stablecoins need a specially designed AMM formula?
First, what it is: The amplification coefficient A determines how flat the StableSwap curve is around a 1:1 ratio. The larger A is, the flatter this region and the lower the slippage.
Why it works this way: A constant-product formula spreads liquidity across all prices from zero to infinity. For assets that should already be exchangeable at a 1:1 ratio, most of that liquidity is effectively wasted.
$CRV is Curve’s governance token. Locking it lets you participate in voting.
Don’t trade with borrowed money. It can mess with your mindset and lead you to make poor decisions.
First, what it is: The amplification coefficient A determines how flat the StableSwap curve is around a 1:1 ratio. The larger A is, the flatter this region and the lower the slippage.
Why it works this way: A constant-product formula spreads liquidity across all prices from zero to infinity. For assets that should already be exchangeable at a 1:1 ratio, most of that liquidity is effectively wasted.
$CRV is Curve’s governance token. Locking it lets you participate in voting.
Don’t trade with borrowed money. It can mess with your mindset and lead you to make poor decisions.
