Bunicorn
Launch Testnet App
  • What is Bunicorn?
  • Introduction
    • AMM DEX
    • Liquidity Mining
    • NFT Collectibles
  • Getting Started
    • Wallets that Bunicorn supports
    • Get BEP20 Tokens
    • Connect your wallet
    • Bunicorn testnet 101
  • Bunicorn Exchange TUTORIAL
    • Tutorial for Trader
    • Tutorial for Liquidity Provider
      • Setup Proxy
      • Swap native BNB to WBNB to farm
      • How to Add Liquidity on Bunicorn
        • How to add liquidity to a Flexible pool?
        • How to add liquidity to a Stable Pool?
      • How to create a new Flexible pool?
        • How to Create a New Smart Pool
        • How to Create a New Shared Pool
      • How to Remove Liquidity
    • How to Join Token Play Farms
      • Stake LPs to Token Play Farm
      • Stake Single Asset $TOP
    • How to Join Ancient Buni NFT Farms
      • NFT Farm Ends. What should I do?
      • Stake LPs to Join the Ancient Buni Farm
      • Stake Single Asset
      • Harvest NFTs (Ancient Buni)
      • How to transfer Ancient BUNI NFTs to another address?
    • How to Join Bunicorn NFT Farms
      • Prestaking Farm Ends. What's next?
      • Stake LP to Join NFT Farms
      • Stake Single Asset
      • Harvest NFTs (Chest/Egg)
      • How to unlock ingame items from Chest/Egg NFTs
      • How to Transfer Egg/Chest NFTs to another address
    • Fee Structure
  • FAQ
    • What is a Flexible Pool?
    • What is a Stable Pool?
    • Can users create Stable pools themselves?
    • Are there any constraints for setting up a Bunicorn Flexible pool?
    • What are the advantages of a Stable Pool?
  • Glossary
  • SMART CONTRACTS
    • Flexible Pools
      • Exchange Proxy
      • Smart Order Router
      • On Chain Registry
      • Smart Pools
        • Overview
        • Configurable Rights Pool
        • Component Libraries
          • Rights Manager
      • Interfaces
      • Addresses
      • Events
      • API Index
    • Stable Pools
      • Pool Addresses
      • Swap Execution
      • Providing Liquidity
      • Flash Swaps
      • Contract Addresses
      • BuniCornRouter02
      • Pool
      • Pool (ERC-20)
      • Library
  • Subgraph API
    • Stable Pools
      • Entities
      • Sample queries
    • Flexible Pools
      • Entities
      • Sample queries
Powered by GitBook
On this page

Was this helpful?

  1. FAQ

What are the advantages of a Stable Pool?

A Stable pool in Bunicorn is a special type of AMM pool that only works for stablecoins. There are several advantages of a Stable pool:

  • Amplified pools with extremely high capital efficiency

Bunicorn protocol will facilitate liquidity providers with the ability to adjust the pricing curves of any stablecoins pair using a special amplification factor also known as ‘AMP.’ Whenever there is a change in token numbers in the pool, AMP will dynamically adjust and amplify the balance to match appropriately. This means that given the same liquidity pool and trade size, Bunicorn protocol can provide much better liquidity and slippage compared to other AMMs.

  • Lower trade slippage due to high capital efficiency.

  • Dynamic fees to optimize returns for liquidity providers.

Fees are adjusted based on market condition to maximize returns for liquidity providers and reduce the impact of impermanent loss.

During high market volatility, fees will increase to capture more profit for liquidity providers. Traders who trade in such volatile markets will receive fewer tokens than average, as the profit is kept in the pool to reduce potential impermanent loss for liquidity providers. During low market volatility, fees decrease to encourage more trading and volume.

PreviousAre there any constraints for setting up a Bunicorn Flexible pool?NextGlossary

Last updated 3 years ago

Was this helpful?