Why Are Stableswap Pools Generally Unsuitable for Volatile, Non-Pegged Asset Pairs?

Stableswap pools are unsuitable for volatile, non-pegged asset pairs because their design is optimized for minimal slippage near a 1:1 peg. If used for volatile assets, the curve's flatness would lead to rapid and extreme reserve depletion as traders exploit the artificially low slippage to buy the appreciating asset cheaply.

This would quickly convert the entire pool into the depreciating asset, causing massive, immediate permanent loss for the liquidity providers.