Does the Capital Efficiency of a Stablecoin Pool Increase or Decrease the Risk of Impermanent Loss?

Increased capital efficiency in stablecoin pools (like those using stableswap curves) means that a smaller amount of liquidity can handle a larger trading volume with low slippage. This efficiency is achieved by concentrating liquidity near the peg.

However, this also means that if a de-peg does occur, the concentrated liquidity will be drained much faster by arbitrageurs, potentially increasing the speed and severity of the resulting impermanent loss.