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What Is the Difference between a Constant Product Market Maker and a Stable Swap Market Maker?

Constant product is for volatile assets (high slippage); stable swap is for pegged assets (low slippage and high efficiency).
Greeks.Live21.11.25

What Is the Difference between a Constant Product Market Maker and a Stable Swap Market Maker?

A constant product market maker (e.g. Uniswap) uses the formula x y = k, which works well for volatile assets but leads to high slippage for stable assets.

A stable swap market maker (e.g. Curve) uses a modified formula that is much flatter around the peg.

This allows for significantly lower slippage and better capital efficiency when trading assets that are expected to remain close to a 1:1 ratio, such as stablecoins.

How Does a Constant Sum Market Maker ($x+y=k$) Differ from a Constant Product AMM?
Why Are Stableswap Pools Generally Unsuitable for Volatile, Non-Pegged Asset Pairs?
What Is the Difference between a Constant Product Market Maker and a Constant Sum Market Maker?
What Are the Trade-Offs between Earning High Trading Fees in a Volatile Pool versus Minimizing Impermanent Loss in a Stable Pool?

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