A win for EVERYONE: arbitrageurs, swappers and liquidity providers.
If you have ever noticed this, you may be wondering why and how Sirius Finance can provide such a low slippage among other stablecoin Dexes.
The images above show an example of how profitable it’s to make swaps on Sirius finance. Swapping 1,000,000 USDC to BUSD on Sirius Finance can help you save $222 — $1,200, and that’s how easy you can earn in Sirius Finance without making any efforts — — only by making the right choice.
The low slippage is not only related to the liquidity but also the algorithm, the more the liquidity of each asset and the more the balance of the 4Pool, the smoother the swap between each asset.
As shown in the dashboard image below, the liquidity of each asset from deep to low is BUSD, USDC, USDT and DAI, which means you can have a lower slippage if you swap from BUSD to USDC than to DAI and also less impermanent loss.
Get to know what impermanent loss is via: <Understanding stablecoin AMM>
Meanwhile, it also gives arbitrageurs a good opportunity to earn from swapping DAI to BUSD due to the 4Pool imbalance (25% of each asset is the perfect balance for 4Pool), where arbitragers can gain more BUSD when the OTC price is $1 for each stablecoin.
But if your swap makes the 4Pool imbalanced again, you will end up receiving less than the swapped amount:
And if you are a liquidity provider, based on the 4Pool’s asset balance(DAI:14.18%, USDC:29.03%, USDT:26.07%, BUSD:30.70%), you can earn more LP tokens if you are depositing DAI instead of depositing BUSD, and lose less LP tokens if you are withdrawing BUSD instead of withdrawing DAI.
As the TVL on Sirius finance continues to grow, we expect an increase in arbitrage opportunities which will increase the number of swaps and volume. This results in a win situation for everyone and even liquidity providers as they will keep earning more fees as well. All this is made possible by our magical 4Pool. If you have some stablecoins sitting idle or in a low-yielding pool, now’s the time to make the right decision.
About Sirius Finance:
Sirius Finance is the first Polkadot-native stablecoin AMM on Astar Network. Our mission is to provide a stable, highly liquid trading platform for stablecoins, deep liquidity for connected protocols, attract and lock tremendous value to facilitate more innovations and collaborations for Astar and Polkadot.
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