Stable Swap (SS) Pools
Pearl v2 also includes Stable Swap (SS) Pools aka Solidly sAMM style liquidity pools. As opposed to the Concentrated Liquidity (CL) pools where liquidity can be supplied in certain price ranges, the stable swap pools distribute the liquidity across the entire curve.
Providing Liquidity and Rewards
Users can provide liquidity to SS Pearl pools in exchange for LP tokens. By staking these LP tokens on the platform, users are eligible for $PEARL emissions. Emission rates to various pools are determined by Pearl gauges which are controlled by $vePEARL voters. More on voting in the following section.
Pearl currently offers one type of constant product pool (sAMM) used for strongly correlated pairs i.e. $MORE and $USDC
Incentives for liquidity providers are based on the following criteria:
The proportion of LP tokens that a user has staked to the total staked LP tokens of that liquidity pair.
The volume of emissions that pair has earned based on the outcome of gauge voting for rewards in that Epoch.
When providing liquidity, there are no hidden fees or obligations and you can withdraw your liquidity at any time.
SS pools do not require an ALM as the liquidity is distributed across the entire curve. All staked liquidity deposited into the SS pools will be eligible to earn $PEARL rewards.
Swaps
Pearl uses the same stable swap engine seen in the latest wave of Solidly-style DEXs.
sAMM: For strongly correlated pairs i.e. $MORE and $USDC
Swap fee: Variable by pool
This type of pool is designed specifically for assets that are expected to consistently trade at near parity, such as different varieties of stablecoins or synthetics. Traders enjoy tighter spreads and lower price impact i.e. less slippage. The sAMM model allows a greater imbalance between two assets in the pool before users encounter a significant price impact, allowing for larger trades to work efficiently with less liquidity.
Stable pools on Pearl use a contract derived from the Solidly algorithm, providing near-zero slippage through innovative swap model:
Where x is the amount of token A in a liquidity pool, y is the amount of token B in a liquidity pool and k is the product which must remain constant.
Last updated