StableSwap are Honoured to Announce Official Launch of their First Low Slippage AMM for Trading Pegged Assets on Solana
StableSwap is the first automated market maker optimized for trading pegged assets on Solana. StableSwap protocol enables Solana users and applications to efficiently trade between stable pairs of assets, as well as earn yields by providing liquidity to the platform.
Depending on their use case, a user might require a specific stablecoin. For example, the lending rate for USDT might be higher than the USDC they’re currently holding. Before, users had to swap between USDT and USDC on traditional AMMs and pay the standard slippage costs. With StableSwap, users can now swap between large sums of USDT and USDC with very low slippage.
StableSwap designed its AMM from the ground up based on the proven Curve Finance model of efficiently swapping between stable pairs of assets. The time-tested algorithm will be expanded beyond the current USDT/USDC pool to other pegged asset pools in the future.
In times of market volatility, holding stablecoins is one risk-management strategy to hedge against downturns. StableSwap will offer the first 100% stablecoin pools on Solana where depositors can finally earn yield on their stablecoins. Currently, returns are limited to trading fees, but this will increase once other yield-generating protocols and token rewards are added to incentivize liquidity provision.
Furthermore, as more cross-chain bridges like Wormhole are released, they expect Solana to be the go-to settlement layer across the crypto ecosystem. When a user sends USDC from Ethereum through Wormhole, they receive a wrapped version of USDC (Wormhole USDC) on Solana. However, in order to interact with Solana applications, they’ll likely need to swap to the native Solana version of USDC. There is currently very little liquidity to switch between Wormhole and native versions of tokens on Solana. StableSwap will be the first touchpoint of liquidity for cross-chain bridges, enabling more activity within the Solana ecosystem.
To simplify the process of trading and adding liquidity to the protocol, StableSwap built a desktop and mobile-friendly interface. As one of the first live Solana applications, StableSwap feel a huge responsibility to design their user experience in a way that takes full advantage of Solana’s superior technology. DeFi should be as easy-to-use as any centralized finance app, including being mobile-friendly. They’re quickly adding more features to the application based on user feedback.
About StableSwap
StableSwap brings Curve to Solana! The team modified Solana’s Solana token-swap program by implementing Curve’s StableSwap invariant. The live app allows users to trade highly-correlated SPL tokens in a familiar swap interface.
About Solana
Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.
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