Classic StableSwap
The Classic StableSwap is an implementation of Curve Finance’s AMM on PancakeSwap. It adds linear invariant constant sum curve (x+y=k) on top of the constant product formula (x*y=k) to keep prices more equal as long as the liquidity pool is not extremely unbalanced. As a result, since StableSwaps are restricted to similarly priced assets, impermanent loss is not as much of a concern (except in extreme depeg cases) and the slippage is lower than normal AMM which just uses the constant product formula.
When you conduct a Swap (trade) on the StableSwap you will pay lower trading fees, than the usual 0.25% on normal PancakeSwap AMM. The fee attribution is broken down as follows:
- 50% to the LP as rewards
- 40% to CAKE buyback and burn
- 10% to the PancakeSwap Treasury
Stableswap Fees
Section titled “Stableswap Fees”Fees for pairs are broken down in the table below:
| Stablepair | Trading Fees | LP Rewards | CAKE Buyback | PancakeSwap Treasury |
|---|---|---|---|---|
| USDT-BUSD | 0.01% | 0.005% | 0.004% | 0.001% |
| USDC-BUSD | 0.01% | 0.005% | 0.004% | 0.001% |
| USDC-USDT | 0.01% | 0.005% | 0.004% | 0.001% |
| HAY-BUSD | 0.04% | 0.02% | 0.016% | 0.004% |
| HAY-USDT | 0.04% | 0.02% | 0.016% | 0.004% |
| axlUSDC-USDT | 0.04% | 0.02% | 0.016% | 0.004% |
| BNBx-WBNB | 0.04% | 0.02% | 0.016% | 0.004% |
| stkBNB-WBNB | 0.04% | 0.02% | 0.016% | 0.004% |
The Kitchen will gradually roll out StableSwap pairs and revise the fees to test and improve the product further.
Why should I use the StableSwap instead of the normal AMM Swap?
Section titled “Why should I use the StableSwap instead of the normal AMM Swap?”- Swap your stablecoins or other pairs with similar asset prices more efficiently with the same trade steps
- With the StableSwap function, the trading slippage is lower than normal AMM
- The StableSwap trading fees are lower compared to the normal AMM