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What Is a “Stableswap” AMM and Why Is It Used for Stablecoins?

It uses a modified formula to maintain a near 1:1 price ratio, minimizing slippage for large trades of assets expected to remain pegged.
Greeks.Live06.11.25

What Is a “Stableswap” AMM and Why Is It Used for Stablecoins?

A stableswap AMM uses a modified formula that keeps the price ratio of two assets extremely close to 1:1, making it highly efficient for trading stablecoins. It minimizes slippage for large trades of assets that are expected to maintain a peg, which is crucial for capital efficiency in stablecoin swaps.

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