🌊Pool types

Stable Pools

Stable pools are designed for assets which have little to no volatility. This means that the formula used for pricing the assets allows for low slippage even on large traded volumes.

x³y + y³x ≥ k

Variable Pools

Variable pools are designed for assets with high price volatility. These pools use a generic AMM formula.

x × y ≥ k

The mathematical formulas are used to keep the total pool liquidity the same at all times.

Below, you can find a visual comparison between the stable (red) and volatile (green) AMM pricing equations, where:

• x is the amount of first asset in the pool

• y is the amount of second asset in the same pool

• k is a fixed constant