Pool types

Stable Pools

Stable pools are intended for assets with minimal or no volatility, and therefore the pricing formula is structured to enable low slippage even for large trading volumes.

x³y + y³x ≥ k

Variable Pools

Variable pools are intended for assets with high price volatility and use a generic Automated Market Maker (AMM) formula for pricing.

x × y ≥ k

The total pool liquidity is maintained by using mathematical formulas. Here is a visual comparison of the stable (pink) and volatile (blue) AMM pricing equations:

• x represents the amount of the first asset in the pool

• y represents the amount of the second asset in the same pool

• k is a fixed constant