What Are the Alternatives to the Constant Product Formula, and What Problem Do They Solve? ▴ Learn

What Are the Alternatives to the Constant Product Formula, and What Problem Do They Solve?

Alternatives include the constant sum formula ($x + y = k$) and the constant mean formula (e.g. Balancer's weighted average).

The constant sum formula is ideal for stablecoin pools as it offers zero slippage near the 1:1 peg, but fails if the peg breaks. Hybrid curves, like Curve's Stableswap, combine elements to provide high capital efficiency for stable assets while maintaining liquidity during de-pegs.

Explain the Difference between a Constant Product and a Constant Sum AMM Curve

What Are ‘Stableswaps’ and How Do They Modify the Constant Product Formula for Pegged Assets?

How Does a ‘Hybrid AMM’ (Like Curve’s Stableswap) Combine Features of Constant Product and Constant Sum?

Explain the Difference between a Constant Product and a Stable-Swap AMM