Trading volatile assets: 0.4%
Stable assets: 0.02%
The distribution is as follows:
50% goes to voters
30% is sent to the treasury
Assets with minimal to no volatility can be incorporated into a stable pool. The pricing formula for such assets allows for minimal slippage, even when trading in large volumes.
Stable pools: x³y + y³x ≥ k
Assets with high price volatility can be incorporated into a volatile pool, which utilizes a generic Automated Market Maker (AMM) formula.
Volatile pools: x × y ≥ k
Mathematically derived formulas are implemented to ensure that the total pool liquidity remains consistent. Below, the differences between the stable (red) and volatile (blue) AMM pricing equations, where:
xis the amount of first asset in the pool
yis the amount of second asset in the same pool
kis a fixed constant