Common has released a StableSwap AMM in the test environment to enable more efficient trading with stable coins. It will go live on Mainnet on September 24th.
This StableSwap AMM is an implementation of Curve Finance’s AMM on Common. Essentially, the StableSwap AMM uses a formula that is more complex than traditional constant product AMMs in order to minimize price slippage and maintain price stability. For this reason, StableSwap protocols are a much more suitable choice for trading assets where price stability is a priority. Initially, the StableSwap AMM will feature the USDT-USDC pair. However, we plan to expand the platform over time to include other stablecoin pairs and potentially liquid staking pairs.
| Standard AMM | StableSwap AMM | |
|---|---|---|
| Price Curve | Constant product formula (x*y=k) | Flatter curve |
| Slippage | Higher slippage for larger trades | Minimal slippage even for large trades |
| Best For | Volatile assets | Stablecoins |
StableSwap protocols are also more scalable and can handle larger volumes and provide more liquidity to the market. Additionally, fees will be lower, as StableSwap AMM charges are generally less when compared to traditional AMMs. For example, the current USDT-USDC pool on Common has a 0.1% exchange fee. While the new StableSwap-based pool will only charge 0.05%!
More traders, more volume: Try it out now!
These lower fees (plus lower slippage) mean much better swap prices for traders, which will attract more traders and encourage bigger swaps—and therefore drive more volume.
But don’t take our word for it—try it out in the test environment now! And get ready for go-live on Mainnet on September 24th!
