Recently, I wrote an article about how STON.fi was planning to introduce new types of liquidity pools. And now, just a week later, STON.fi has added its first unique pool.
For those unfamiliar:
STON.fi is the leading exchange on the TON blockchain.
Learn more about STON.fi by reading my article.
StableSwap Pool
Today, STON.fi introduced its first StableSwap pool, featuring two assets pegged to the dollar: AquaUSD/USD₮.
For the creation of this pool, the tokens AquaUSD and USDT were chosen.
You’re likely familiar with USD₮, but what about AquaUSD?
AquaUSD is a dollar-pegged stablecoin from the Aqua project, which offers favorable lending options on the TON blockchain.
Every 1 AquaUSD is backed by at least $1.50 in Toncoin/LST as collateral, ensuring stability with a minimum collateral ratio of 150%.
Why Is a StableSwap Pool Needed?
A StableSwap pool is optimized for exchanging tokens of similar value, achieving minimal slippage.
To clearly demonstrate the efficiency of a StableSwap pool, let me provide a practical example:
Initial data:
The pool contains 10,100 USDT and 10,100 AquaUSD.
We want to swap 1,000 USDT for AquaUSD.
First, let’s calculate the slippage in a regular pool (Constant Product Pool).
In a standard pool, the formula x*y=k is used.
x — amount of USDT
y — amount of AquaUSD
k — a constant value that does not change.
Calculation:
Find the value of k:
x*y=k
k = 10,100*10,100=102,010,000
Add our 1,000 USDT to the pool:
x1=10,100 + 1,000 = 11,100 USDT (remaining in the pool after the swap).
Calculate the new amount of AquaUSD:
y1=k/x1
y1= 102,010,000/11,100= 9,189.19 AquaUSD (remaining in the pool after the swap).
Find how much AquaUSD we receive:
Before the swap, the pool had 10,100 AquaUSD.
After the swap, it has 9,189.19.
10,100 − 9,189.19 ≈ 910.81 AquaUSD (we receive after the swap).
Slippage cost us nearly $90 (8.92%).
If we had swapped tokens in a StableSwap pool with the same liquidity, we would have received 997.41 AquaUSD.
The loss would have been only $2.6 (0.25%).
Considering that at the moment the liquidity pool doesn't have much liquidity, if there is more liquidity, you will receive an amount closer to 1000 AquaUSD during the swap.
I think questions about the efficiency of the StableSwap pool disappear on their own.
How Does a StableSwap Pool Work?
StableSwap is like a curve that, instead of sloping as in a regular pool (Constant Product Pool), remains almost flat near the ratio of similar assets. This ensures minimal slippage.
You can visualize this in the following chart:
Conclusion:
STON.fi has introduced a new, unique type of liquidity pool to the TON blockchain. The StableSwap pool enables the exchange of tokens with similar values at minimal slippage.The addition of StableSwap pools to STON.fi allows users to stay within the decentralized TON blockchain ecosystem without needing to exit to trade tokens of similar value efficiently.
STON.fi social networks:
Twitter - @ston_fi Telegram - @stonfidex Reddit - r/STONFi
