Asked: Why is slippage so low when swapping between stablecoins?
My usual answer is: Curve’s StableSwap is an AMM designed for assets with similar prices, such as different stablecoins or ETH and stETH. The constant-product formula spreads liquidity across all prices from 0 to infinity, but for assets that should be exchangeable at a 1:1 ratio, most of that liquidity is never used.
$CRV 0.2658 (+0.68%)
If you found this useful, bookmark it so you can come back to it later.
My usual answer is: Curve’s StableSwap is an AMM designed for assets with similar prices, such as different stablecoins or ETH and stETH. The constant-product formula spreads liquidity across all prices from 0 to infinity, but for assets that should be exchangeable at a 1:1 ratio, most of that liquidity is never used.
$CRV 0.2658 (+0.68%)
If you found this useful, bookmark it so you can come back to it later.