Swapping Stable and Volatile Assets
Last updated
Last updated
Voltswap is a non-custodial decentralized exchange that is designed to provide minimal slippage and trading fees for swapping stable coins and volatile assets alike. Users are able to trade trustlessly, peer-to-peer, with liquidity that is supplied by other users.
To be a liquidity provider, holders of supported tokens need to supply equal parts liquidity for the quote token and a base token in return for liquidity provider (LP) tokens. LP tokens are the certificate to the holder that they have provided liquidity to the token pair. This pooled liquidity enables traders access to the base or quote tokens in exchange for a small fee, which is distributed proportionately to all of the liquidity providers.
The ve(3,3) deployment supports both stable and volatile pools ensuring better capital efficiency;
Stable pools are designed for assets which have little to no volatility. They follow the curve which provides lower slippages for similar assets:
The lower swap fees of 0.04% reduces the slippage further.
e.g.: BUSD.bsc-USDC.eth, WETH.eth-SuETH
Volatile pools are designed for assets with high price volatility. They follow uniswap like generic AMM curve:
The swap fees are 0.3% similar to Uniswap.
e.g.: MTRG-VOLT, MTRG-BUSD.bsc
IMPORTANT: While adding liquidity or creating new pools, users should ensure that they are adding liquidity to the right type of pool (stable or volatile)
NOTE: If both tokens of a liquidity pool's pair are whitelisted by veVOLT to be staked in gauges and receive VOLT emissions rewards, the liquidity providers of that pair will not receive swap fees. The profits expected by the liquidity providers staking on gauges are solely derived from VOLT emissions.
NOTE: If a liquidity pool is not whitelisted to be staked in the gauge, it will receive all the swap fees it generates but have no VOLT emissions. Likewise, liquidity providers that do not stake the LP in gauges will receive the swap fees, but no VOLT emissions.