With a lot of pride, we present the new StablePlaza pool on DefiPlaza!
DefiPlaza now has two multi-token pools that are optimized to give the lowest trade cost and the highest capital efficiency to the end-user.
The (existing) DefiPlaza pool is a 16-token pool of blue-chip tokens and is 15 times more capital efficient than traditional pair-based DEXs, offering up to 15 times more fees per unit of liquidity at the same trading volume. Plus, all fees coming from the 120 trading pairs are collected in one pool.
The new StablePlaza pool is a 4-token pool of stablecoins and takes the same highly optimized approach as the DefiPlaza pool to provide cheaper trades, with an even lower transaction fee of 0.03% of the value traded.
And for each trade, we automatically select the pool that would result in the lowest trade fee.
While the DefiPlaza pool is up to 65% cheaper than Uniswap, the StablePlaza pool will be up to 25% cheaper than Curve, which isn’t as expensive as some of the pair-based DEXs to start with.
It’s enough to say we are really proud of this!
For the four stable tokens in the StablePlaza pool, we looked at fully collateralized stable tokens and stayed away from any form of algorithmic stables. The four-token pool will consist of $USDC, $USDT, $DAI, and $BUSD.
We explain more about why we selected these four in The 4 stable tokens in the StablePlaza pool.
Anchored Liquidity
Anchored liquidity is a special case of concentrated liquidity as introduced by Uniswap V3.
The idea of concentrated liquidity is that liquidity providers can select a price range [a, b] and their liquidity will only be active when the price is within that range.
Since stablecoins tend to be pegged around 1 USD, we could create a new form of concentrated liquidity that “anchors” around the 1 USD price point with only small margins on either side.
This way, liquidity providers can deploy highly concentrated liquidity, with minimal impermanent loss.
Read more about anchored liquidity in our StablePlaza White Paper.
Staking
Anyone who wants to can now stake their DFP2 governance tokens in return for a part of the generated StablePlaza fees, which makes this the first utility added to DFP2. And it won’t be the last!
As an extra feature holders can voluntarily lock their DFP2 for a period of up to 180 days to increase their cut of the fees. Without locking the cut is 1x for each DFP2, with voluntary locking that cut can go up to 3x.
With the voluntary locking, DFP2 holders are rewarded for removing their liquidity from the market for a certain amount of time, decreasing the price volatility of DFP2 in the process.
You can read more about the fee structure of StablePlaza.
Next steps
With the launch a new arb community bot will go live as well, making sure the StablePlaza pool is in balance. Any profits from the arb bot will be used to buy DFP2 on the DefiPlaza pool and burn it.
We’re closely talking to 1Inch to get the StablePlaza pool integrated as well, we’ll keep you posted on our progress
How you can help
We could use your help promoting this announcement on Telegram, Twitter, Discord, and anywhere you think the people need to hear about the new StablePlaza pool.
You can also retweet our announcement tweet:
LFG! 🚀