Introduction

Quack quack quack! 🦆

Today, we're thrilled to unveil the Dackie StableSwap feature, a fork of the Curve Finance protocol. Integrated with our current DackieSwap Router, this new feature aims to provide users with the most optimized route for their transactions.

TL;DR: This StableSwap feature will save you a lot of transaction fees for pairs with stable exchange rates like USDC - USDT, ETH - staked ETH,...

How it works

StableSwap pools are independent entities designed to offer lower slippage and more favorable fees to users performing swaps. Typically, the fee on StableSwap pools is just around 0.05% of the trade volume. From this fee, 50% is directed to Liquidity Providers (LPs), and the remaining 50% is allocated to the team treasury. The fee structure of each pool can be configured based on the specific needs and demands of the project and team.

We integrate the StableSwap feature into our AMM routing mechanism by implementing a Dackie Smart Router. This router intelligently determines the most beneficial route for the user.

How is it different from a normal swap?

StableSwap Route

Let's illustrate with an example where 10,000 USDT is swapped via both the Dackie Route and the Dackie StableSwap Route, as shown below.

The fee is 0.3% of the trade volume when transacting with a regular pool. This results in an LP fee of approximately $30, and a price impact of 0.06%.

With the StableSwap pool, the fee is only 0.05% of the trade volume, which translates to an LP fee of about only $5, and a price impact of less than 0.01%. This is highly beneficial for users.

Users can track the route of this transaction by clicking the 'Route' button.

Combine StableSwap Route and Dackie Route

With the Dackie Smart Router, we can provide an optimal path by integrating the Dackie Route and the Dackie StableSwap Route. For instance, consider the purchase of cbETH using USDT.

The route of this trade is below.

Let's analyze this transaction. The USDT -> ETH conversion followed the Dackie Route, with a 0.3% fee. The ETH -> cbETH conversion, on the other hand, was routed through the Dackie StableSwap Route with a significantly lower fee of 0.05%. This way, the LP fee totals only $35 and the price impact is a mere 0.01%. Without the StableSwap route, the cost of this transaction could have been as high as $60.

Conclusion

So, who benefits from StableSwap? Firstly, our Dackity - we offer a way to reduce trading fees for our users. Secondly, our frens - the projects built on Base. For instance, liquidity staking projects like Lido or Coinbase can open StableSwap pools such as ETH-cbETH, and ETH-stETH. These pools offer lower fees, which can bring significant benefits to their users.

Let’s quackenjoy Dackie StableSwap! Quack…