What Are the Characteristics of a Stablecoin-Focused AMM like Curve?
Stablecoin-focused AMMs use a specialized bonding curve (like the StableSwap invariant) that minimizes slippage for trades between assets that are meant to maintain a near 1:1 peg, such as stablecoins. This design is highly capital-efficient for low-volatility assets.
The goal is to provide deep liquidity and low-cost swaps for stablecoins, which is crucial for decentralized finance infrastructure.