Utilizing a stableswap 2.0 model, Wombat users can: swap stablecoins at hyper-efficient exchange rates with minimal slippage.
The swap price is defined by the rate of change in cash of asset x per change in cash of asset y. Defined as:
As you may have noticed, the exchange rate is independent of the number of token x and token y in the pool and depends solely on the coverage ratio.
= 80% and
= 150%. We have
If we reverse the direction, swap from token y to token x. We have
Wombat incentivizes a swap if the coverage ratio of two tokens is converged and penalizes if it diverges, as shown in the above example. It helps keep the pool in a healthy state and prevents a token from being defaulted. Learn more in below guide: