Introducing Increment Stableswap
Announcing the Launch
As the leading all-in-one DeFi hub in the Flow ecosystem, we are thrilled to announce the launch of Increment Stableswap product. It aims to provide an automated market making solution for pegged assets, allowing users to trade between assets that are correlated in nature like USDC/FUSD, Flow/stFlow, with minimum slippage.
This is Increment’s another major step in driving DeFi innovation in the Flow ecosystem.
Unleashing the Power of Stableswap
Stableswap brings a lot of benefits that set it apart from normal automated market makers (AMMs). Let’s delve into some of the key features:
- Minimum Slippage: We’ve adopted the Solidly stableswap algorithm (x³y + y³x ≥ C), whose innovative price curve formula supports swaps of pegged asssets with minimum slippage.
- Liquid-Staking-Asset-Friendly Improvement: Solidly stableswap algorithm works well for “hard” pegged assets like USDC/USDT/FUSD, or different versions of bridged BTC like ceWBTC/whWBTC et al.. But LPs of liquid-staking-asset pairs (stFlow-Flow) are still subject to arbitrage losses: as stFlow’s value (against flow) increases when the auto-compounding of staking rewards happens in the end each epoch (~7 days / epoch). To make it more suitable for liquid-staking-asset pairs, we extend Solidly stableswap algorithm a little bit further, namely the `weighted-solidly-stableswap-algorithm`. For more information, read this.
- Lower Trading Fees: Compared to the 0.3% fee for normal volatile pairs, stableswap pairs offer a much lower rate of 0.04% per trade. 7.5X less!
Trading on StableSwap
It is straightforward and similar to using the existing Swap product:
- Go to Swap: https://app.increment.fi/swap
- Choose the token pairs you would like to trade. The routing algorithm automatically splits your trade across multiple swap pairs to give the best result.
- You’re all set! (If it’s your 1s time swapping pls check guidance here.)
(ℹ️ Hint: The stableswap is by default enabled, and you can choose to turn it on/off in the settings panel and apply the change. More liquidity sources may be integrated in future!)
Stableswap pair-creation & liquidity management
There’s a small difference in creating pairs: now you have to choose whether to create a stableswap pair or a normal swap pair (i.e. “volatile” pair). Noting that stableswap pair is only designed for assets that are highly correlated, for example: stablecoin assets or liquid staking assets. If you’re not sure about this, you should just create volatile pairs most of the time. (⚠️ Causion: Creating stableswap pairs for uncorrelated assets may cause you to lose money.)
Liquidity provision is similar as before , the only difference is that there’s a “1≈1” symbol to differentiate stable pairs from normal swap pairs.
Looking Ahead
Increment Stableswap is yet another milestone of our journey towards creating a robust, inclusive, and easy-of-use DeFi ecosystem. Our team is committed to continuous development and innovation, with plans to introduce new features and expand our offerings in the near future. Stay tuned for updates on our roadmap and upcoming launches!
Great thanks to our friends, partners, team and community members who encouraged and supported us all along the way to make it happen! ❤️
Join the Increment on Flow
Increment — the leading monolithic DeFi platform on Flow with real yield: with one-stop services including AMM/DEX trading, Liquidity mining, Money Markets, Liquid Staking and StableSwap.
Apps: https://app.increment.fi
We invite you to connect with our vibrant community, engage with like-minded traders, and stay informed about the latest news and updates. Together, we can reshape the future of trading and unlock the true potential of decentralized finance.
Twitter: https://twitter.com/IncrementFi
Discord: https://discord.gg/r2keKxuKqX
