Stable Pool

Stable Pool Formula

Stable pools use a hybrid invariant formula to optimize swaps between assets with similar values (e.g., USDC/USDT, ETH/stETH):

Where:

• x = reserve of token_1

• y = reserve of token_2

• k = invariant (constant), which must remain unchanged after each swap

Explanation:

• The pricing curve of stable pools is flatter compared to the volatile pool formula (x * y = k).

• This design minimizes slippage when swapping between tokens with nearly equal value.

• The formula combines both sum and product effects, keeping prices stable within the equilibrium zone.

How to create stable pool

Use the create_pool function from the router module.

public entry fun create_pool(
        token_1: Object<Metadata>,
        token_2: Object<Metadata>,
        is_stable: bool,
    ) {
        ...
    }

Function Parameters

• token_1: The first token object used to create or provide liquidity.

• token_2: The second token object used to create or provide liquidity.

• is_stable: Set to true to create a stable pool.