What is StableKoi?
StableKoi is the leading cross-chain stable swap on Nervos Network, providing the liquid foundation for stablecoins, a type of cryptocurrency whose value is pegged to another asset. Anybody can contribute their assets to multiple liquidity pools and earn fees by using this decentralised liquid aggregator. Therefore, you may exchange stablecoins and tokens with ease.
What are stablecoins?
Stablecoins are a fundamental part of the whole ecosystem and they all serve two purposes; to provide stability and anchoring to a particular currency, often the dollar. By providing stability in the cryptocurrency market, stablecoins effectively invite those participants who were once too hesitant to enter the market due to excessive volatility. Compared to other cryptocurrencies, stablecoins are tethered to fiat currencies and subsequently are less prone to fluctuations and easier to assist economic exchanges.
Why StableKoi?
StableKoi’s mission is to connect the world’s assets by providing a networked liquidity foundation. Because assets from one blockchain can’t natively exist on another, stablecoins are an elegant way to trade into and out of tokens on disparate blockchains and exchange value across the ecosystem. Due to its speed and scalability, Nervos is the ideal blockchain to serve as the settlement layer for StableKoi’s liquidity network. For that reason, StableKoi comes as the most liquid cross-chain stable coin exchange on Nervos Network to facilitate the transfer of assets between Nervos and other blockchains. StableKoi allows users to;
• Swap stablecoins.
• Swap the same assets from a different chain.
• Stake, earn and govern ecosystem with the KOI token
The algorithm at the base of StableKoi aims to maximise liquidity within the pool by providing lower price slippage. Every time someone makes a trade on StableKoi, the Liquidity Providers receive a small commission divided equally between all participants. In addition to receiving a commission for each trade or swap, similar to Uniswap, some of the liquidity is provided to lending protocols, thus earning extra interest in addition to trading commissions. It should be noted that since commissions are very dependent on daily volumes, APYs can vary greatly. The main advantage, therefore, of becoming a Liquidity Provider on StableKoi is to receive in addition to trading commissions also interest from the protocols to which liquidity is provided.
StableKoi’s future is bright. We’ve chosen to build on Nervos Network because of near-zero transaction fees, quick transaction times, and ease of use. We’ll also build support for additional assets, bridges, and more. We’re excited to invite you to join us!
How StableKoi work?
Stablecoin’s value is pegged to the value of another asset, but it might not be clear why the market believes they’re valued at that pegged price. Assets are priced using a formula developed for swaps of a comparable range. For example, 10 USDT should be equal to 10 USDC, which should be equal to 10 BUSD. There will be slippage if you first convert $5 million worth of USDT to USDC, and then to BUSD. This slippage can be minimised by StableKoi’s formula even while converting huge numbers.
Liquidity pools also help to ensure the least amount of slippage while exchanging digital currencies. StableKoi ensures a less volatile lending protocol while still paying high interest on the available liquidity by concentrating on stablecoins.
This algorithm rebalances the pools once trades have taken place, and it is regulated by the AMM. Let’s imagine a pool has USDC and USDT in it. StableKoi trader wants to sell USDC and leverages this liquidity pool. Because there are now more USDC in the pool, it is now uneven. The price of USDC is reduced to encourage traders to purchase USDC with USDT in order to rebalance the market. USDT is bought by arbitrage traders using USDC. In this way, the liquidity pool rebalances the USDC/USDT ratio. The price incentive helps to maintain the proper balance of the liquidity pools.
Over time, we will be adding additional liquidity pools as well as additional functionality to the application, far beyond stablecoin swaps. The first trading pairs will be:
• USDC(ETH) — USDT(ETH).
• USDT(BSC) — USDT(ETH).
• USDC(BSC) — USDC(ETH)
About StableKoi
StableKoi is the most liquid cross-chain stable swap on Nervos Network and will provide a liquidity foundation for stablecoins and assets from different blockchains. StableKoi will facilitate the transfer of assets between Nervos and other blockchains. In addition, users on StableKoi will be able to deposit crypto in the liquidity pool to earn passive yield, token incentives and vote on the governance of the ecosystem.
