Side Pool & BNB Pool
Wombat is an avant-garde stableswap. It never stops innovating. It continuously brings more invention to the DeFi space.
By researching Wombat's Invariant, it discovered a dynamic pool that supports swaps between assets with different values as supplied by external oracles.
= Liability of token x (in token amount)
= relative price of token x
= coverage ratio of token x
= amplification factor
BNB liquid staking pool is the first dynamic pool on Wombat Exchange. Users can swap their tokenized staked BNB for native BNB tokens without waiting for the unstaking period.
The BNB pool contract reads the BNB exchange rate of the tokenized staked BNB from respective staking contracts.
A pool is like an index that holds a basket of assets. If the price of its underlying assets changes, it is possible that
deviates from 1. However, it's pretty unlikely that the
of BNB pool will decrease. We expect the coverage ratio of liquid staking BNB to be higher than 100% and that of native BNB tokens to be lower than 100% as natural buy pressure is imposed on BNB. In that case,
However, by any chance
drops, the gap can be filled, and the coverage ratio can be pushed back to 1 with haircut fees accumulated.
The smart contract implementation,
is assumed to be 1 in deposit and withdrawal to simplify the calculation.