FAQs

Frequently Asked Questions regarding the protocol

Q: What is the difference between classic and stable pair type?

A: The classic pair type utilizes the formula $x * y = k$ as the invariant for calculating input and output token amounts. You should use this curve type for assets which have no correlation with each other (e.g. BTC.b-WETH or AVAX-USDC). The default swap fee is set at 0.3% but is changeable by governance actions.

For the stable pair type, it is meant for tokens with very close values (e.g. stablecoin pairs such as USDC-USDT, USDC-DAI, EUROC-EUROe, WBTC.e-BTC.b). It uses the stableswap invariant with a configurable Amplification Coefficient to control how much the prices should stay close even if the token ratios deviate from 50-50. With this invariant the protocol provides greater capital efficiency and better swap prices even with a smaller amount of liquidity. The default swap fee is set at 0.01% but is changeable by governance actions.

Q: Are fee-on-transfer tokens supported?

A: No, they are not supported at the moment.

Q: Are rebase tokens supported?

A: No, rebase tokens (such as stETH or aaveUSDC) are not supported at the moment. However wrapped versions of rebase tokens (such as wstETH) are supported.

Q: What are the fees?

A: The default fees for pre DAO governance is 0.3% on Classic pools, and 0.01% for Stable pools. 25% of the swap fees are reserved as a platform fee, and all other fees are shared amongst liquidity providers. In the future, the DAO will be established and the fees will be variable, as dictated by DAO shareholders.

Q: Has the protocol been audited?

A: Yes, you can find the details of any audit under the "Audit" tab.