As part of the launch of the upcoming StablePlaza pool, a white paper was created to explain the core principles in more detail.
The StablePlaza pool will launch this Thursday, July 14.
Abstract
The white paper introduces StablePlaza, which is an efficient distributed exchange for stable tokens. The main innovation used in StablePlaza is the concept of anchored liquidity which is a specific case of concentrated liquidity using an amount of virtual liquidity tailored specifically for stablecoins. The maximum price difference between tokens is set based on historic data for stable token relative prices. Anchored liquidity is generalized to multi-token AMMs and the first deployment of StablePlaza will list the 4 largest USD stable tokens on Ethereum. The result is a stable token exchange that is highly efficient from both the capital deployment and gas consumption perspectives.
Read the whole white paper here:
StablePlaza: An efficient constant product AMM for stable tokens based on anchored liquidity