Let’s talk about stablecoin pools.
Curve’s StableSwap is an AMM designed specifically for assets with similar prices, such as different stablecoins or ETH and stETH.
One thing many people overlook: the constant product formula spreads liquidity across all prices from 0 to infinity. For assets that are supposed to trade at a 1:1 ratio, most of that liquidity is effectively unusable.
Stablecoin pools also carry risks: if any stablecoin in the pool loses its peg, liquidity providers may end up holding a large amount of the depegged coin.
$CRV is Curve’s protocol token. Locking it allows holders to participate in voting.
#CRV
Curve’s StableSwap is an AMM designed specifically for assets with similar prices, such as different stablecoins or ETH and stETH.
One thing many people overlook: the constant product formula spreads liquidity across all prices from 0 to infinity. For assets that are supposed to trade at a 1:1 ratio, most of that liquidity is effectively unusable.
Stablecoin pools also carry risks: if any stablecoin in the pool loses its peg, liquidity providers may end up holding a large amount of the depegged coin.
$CRV is Curve’s protocol token. Locking it allows holders to participate in voting.
#CRV
