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Protocol Design

AMM Logic

Classic Pools

Designed for token pairs with non-correlated price movements (e.g., IOTA/wETH), these pools follow the Uniswap V2-style invariant formula: x * y = k

This formula ensures that every swap rebalances the reserves while maintaining constant liquidity, providing a trustless and efficient way to exchange volatile assets.

Stable Pools

For correlated assets such as stablecoins (e.g., USDC/USDT), Pools implements a stable swap curve, similar to the one used by Curve and Uniswap v3's stable pools.

These pools offer:

  • Reduced slippage when tokens are near parity.

  • A better experience for users trading pegged or closely priced assets.

  • Efficient capital deployment by concentrating liquidity around expected price bands.