Demiourgos Stable Swap Pool
USDD/USDC Stable Swap Pool.
Last updated
USDD/USDC Stable Swap Pool.
Last updated
The Demiourgos Stable Swap Pool is the special Pool whose LP is eligible to be staked in the Stables Liquidity VAULT™.
The Pool will be created with USDD and USDC, so as to offer a means for Demiourgos very own stable coin to be swapped in a stable manner with other stable coins.
For now only USDC is planned as a swap alternative for the USDD Stable Coin.
The Stable Swap Pool is an automated market maker function focused on swapping between two stable assets with minimal slippage and more efficient trading for liquidity providers. The concept was pioneered by Michael Egorov, founder of Curve Finance, in a whitepaper published in late 2019; his swap invariant has majorly impacted the DeFi Ecosystem.
Stable-Swap invariant is a more complex function optimized for minimal slippage and a flatter curve around the optimal peg range. As a result, the swaps are mostly kept in the desirable 1:1 exchange ratio, offering better efficiency with big trades, benefiting traders and liquidity providers:
In order to provide the best user experience, users will be able to add liquidity in the Stable Swap pool with any ratio of tokens they have in their wallet, including using only one of the tokens. This mechanism performs a swap on the pool before adding liquidity in the same ratio as the pool after the swap. (Both swap and add liquidity happens in a single transaction and the swap fee is paid from the swap)
In order to provide the best possible user experience, we want to allow liquidity providers to provide liquidity for Stable-Swap pools with any ratio of tokens they have in their wallet (including using only one of the tokens in the pool). This mechanism performs a swap on the pool before adding liquidity in the same ratio as the pool after the swap.
The Stable Swap Pool will have a 5% swap fee. This is split as follows:
Liquidity Providers = 0.05%
Special Fee 4.95% going to:
Demiourgos.Holdings Private Vault = 1%
VestaX.Finance™ POT = 0.475%
Refined Vesta VAULTs DEX Fees = 0.475%
Premium Reward in the Stables Liquidity VAULT™ = 3%.
According to Pool Mechanics the Fee System will be like this:
Total Fee 5%
Special Fee 4.95%
Vault Share of Total Fee (60%) [0-99] (Check needs to be made, this percent of the whole total fee percent must be at most equal to the Percent of the Special Fee)
Although it might seem that the Liquidity Providers only get 0.05% of the swap volume, in actuality they will be getting 3.05% of the swap volume. The only difference is that they will be getting 0.05% of the swap volume as profit injected directly in the LP tokens, while the rest of 3% they will be generated separately in the Fee Token, DIRECTLY, by staking the LP Tokens in the Stables Liquidity VAULT™.
This provides a great advantage because they won't be needing to remove liquidity in order to collect the "Liquidity Provider Rewards", like any other Liquidity Provider Rewards are generated.
