⚖️Balancing Stable Vs Unstable Pools

Aldrin Stable Pools are designed to enable capital-efficient swapping, even when the pool token ratios are imbalanced. This means that users can deposit and withdraw at ratios that aren't the 50:50 balance they see in most conventional liquidity pools. For example, the Pool for USDC/USDT may showcase a snapshot of more USDC than USDT, or vice-versa.

However, an even pegged exchange rate for swapping will still be available i.e., 1 USDC = 1 USDT. The impact, thus, on Liquidity Providers would be that they may be in a position where they are withdrawing/depositing more of one token than the other. Please bear this in mind when depositing and withdrawing liquidity.

Constant Products Pools (those used to pair tokens that aren't pegged in price) tend to carry a different mechanism and therefore the price of the tokens in it are directly linked to the changes of balances in that pool.

Last updated