# 💱Stableswap

StableBase is an automated market maker (AMM) function focused on swapping between correlated assets - that include stablecoins & pegged-value cryptos (e.g. LSDs) - with **minimal slippage for traders** and **more efficient trading for liquidity providers.** This includes USD-pegged stablecoins (like DAI and USDC), but also ETH and sETH (synthetic ETH) or different versions of wrapped BTC.

### Algorithm

StableBase is a hybrid AMM that combines both Constant Product and Constant Sum models, and the following chart shows the Stableswap algorithm in relation to constant product and constant sum invariants.

**Constant Sum:**When the liquidity pool portfolio is balanced, the algorithm functions as a Constant Sum formula;**x + y = k**. You can observe the StableSwapstaying close to the Constant Sum**blue line**, and the price is stable.**red line****Constant Product:**As the liquidity pool portfolio becomes imbalanced, the StableSwap algorithm functions as a Constant Product formula;**x * y = k**. You can observe the StableSwapnow resembling the Constant Product**blue line**, and the price becoming expensive.**purple line**

A StableBase pool is an implementation of the StableSwap invariant with 2 or more tokens, which can be referred to as a *plain pool*. Alternative and more complex pool flavors include pools with lending functionality, so-called *lending pools*, as well as *metapools*, which are pools that allow for the exchange of one or more tokens with the tokens of one or more underlying base pools.

### Value-Accrual

When you conduct a Swap (trade) on the StableBase you will pay lower trading fees, than the usual 0.25% on normal AMM. The fee attribution is broken down as follows:

65% to the LP as rewards

15% to the Protocol

20% to SBASE stakers

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