| id | period | title | author | discussions-to | company_name | category | focus_area | open_source | funding_type | amount_requested | delivery_date | status | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
202 |
4 |
Pact.fi Retroactive Stableswaps |
Andrew Kotulak (@temptemp3) |
Pact |
dApps |
Dex |
true |
Retroactive |
135000 |
2024-04-24 |
Final |
This proposal focuses on retroactive funding for Stable Swaps, and to open source the code. Stableswaps are key to any DeFi ecosystem, and Pact is currently the only dApp to offer these.
Łukasz Ptak: Blockchain developer
Mateusz Walczak: Blockchain developer
Mateusz Tomczyk: Tech lead
Patryk Grzyb: Frontend dev
Pact has emerged as one of the most user-friendly Algorand dApps, offering deep liquidity and low transaction fees. Leveraging Algorand’s speed and scalability, Pact provides accessible smart contract functionality, making transactions available to users of all levels of wealth and experience.
This proposal is for retroactive funding for Pacts StableSwap Pools. StableSwaps are very important, and a cornerstone to DeFi across all chains. We are proud to have brought this product to market and are the only Algorand DEX with this feature.
Stable swaps are a type of cryptocurrency exchange mechanism designed primarily for trading between stablecoins or other assets with low price volatility. They were first introduced by the protocol Curve Finance. The primary aim of stable swaps is to allow users to trade between different stablecoins (like USD Coin, Tether, Dai, etc.) efficiently, with minimal slippage and lower fees compared to traditional exchange mechanisms used for more volatile cryptocurrencies.
- Open source Stable Swap Pools to Github https://github.com/pactfi/stable-pools
Increased Awareness to Algorand & Pact:
Having tools like Stable Swaps is very important both for Algorand & Pact as it signals to new potential users that we have a robust DeFi landscape and can be competitive with other chains. These futures are, but not limited to:
Low Slippage: Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed. Stable swaps are optimized for assets whose values are supposed to remain constant or nearly constant, thus reducing slippage even during large trades.
Efficient Use of Liquidity: These swaps utilize specialized mathematical formulas (like the StableSwap invariant from Curve) that require less liquidity to achieve the same level of slippage compared to traditional Automated Market Makers (AMMs) used for more volatile cryptocurrencies.
Lower Fees: Because these trades involve lower risk and volatility, the transaction fees are lower than those for trading highly volatile crypto assets. Focused on Stablecoins: While traditional AMMs can handle a wide range of cryptocurrencies, stable swaps are specifically designed for stablecoins or similarly behaving assets, providing a more tailored and effective solution for these types of trades.
Arbitrage Opportunities: Despite the primary focus on stablecoins, price discrepancies can still occur, and stable swaps provide opportunities for arbitrage, allowing traders to profit from differences in pricing between different stablecoins.
pact.fi
Pact | The home of liquidity on Algorand 1
Low cost, fast swaps on Algorand’s secure network.