StableVault is an automated market maker (AMM) that allows you to exchange stablecoins and other pegged tokens. The benefit of using StableVault over other exchanges is that StableVault offers low fees and low slippage.
You can swap stablecoins with StableVault and get better exchange rates than traditional exchanges. This is because StableVault uses a different underlying model for swapping.
In this model, trades experience lower slippage. This is due to StableVault having more than two tokens as well as a different underlying formula.
To keep StableVault balanced, a discount is given to swaps that balance the pool. Any swaps that imbalance the pool pay a slight premium. This creates arbitrage opportunities and brings the pool to equilibrium.
There are three things to know when depositing or withdrawing liquidity in StableVault.
1) You can deposit or withdraw any combination of tokens.
Example: in the DAI.e, FRAX, TUSD and USDT.e pool you can deposit all four tokens or just one token.
2) Depositing or withdrawing a token that helps balance the pool gives you a discount. Similarly, deposits or withdrawals that imbalance the pool pay a premium.
Example: in the DAI.e, FRAX, TUSD and USDT.e pool, if there is a surplus of DAI.e, then you will get more DAI.e by withdrawing in DAI.e. You will get a smaller share of the pool by depositing in DAI.e. The reverse is true if there is a shortage of DAI.e.
3) Depositing gives you a receipt token called s4D. This token represents your underlying deposit.
Adding liquidity to StableVault gives you a cut of the swap fees. Additionally, you earn SNOB token rewards by depositing your StableVault receipt token into the Compound & Earn page of our website.
In the future, StableVault will integrate with lending strategies across Avalanche and give an opportunity for higher APRs.
s4D StableVault - a 4 token pool between DAI.e, FRAX, TUSD and USDT.e
These vaults are in the process of being deprecated.
s3D StableVault - a 3 token pool between USDT, DAI, and BUSD
s3F StableVault - a 3 token pool between USDT, FRAX, and TUSD