Smoothy.finance implements a simple and efficient exchange that maintains a long list of assets in the pool. There are several swap options for each token in the pool.
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About Smoothy.finance
Smoothy.finance is built from the ground up to address the challenges of existing protocols. Smoothy's goal - to offer one exchange pool for all tokens.
Main advantages:
| 1. | Simple and smooth replacement. |
| 2. | Extremely low gas charges. |
| 3. | Flexibility to add / remove any stablecoins. |
| 4. | Better liquidity / less slippage and better LP reward. |
One of the important advantages of the Smoothy exchange protocol, using soft / hard weights and a binding curve, is that when exchanging two tokens, only two tokens will need to be calculated (including the penalty), which significantly saves computational costs.
Dynamically adding / removing Smoothy tokens provides a lot of flexibility to support new tokens at extremely low cost. Smoothy solves problems, using the Dynamic Cash Reserve (DCR) algorithm. The basic idea is that Smoothy will reserve about 10% of the token as cash in the pool and contribute the remaining 90% to the interest accrual protocols.
Smoothy will rebalance so, that:
- If the cash reserve exceeds 20% of the token, 10% will be held in cash and the rest of the cash reserve will be deposited into the base protocol to receive interest;
- If the cash reserve is insufficient to complete the swap, additional tokens are withdrawn from the underlying protocol, so that 10% of the token becomes reserved cash after the swap.
As a result, if the swap does not trigger a rebalancing event, the gas price of the swap can be extremely low by moving the reserved cash, held by Smoothy, and bypassing the costly gas withdrawal / escrow transactions under the underlying protocols.
Project integrity
The developers provide a separate document, where you will find all necessary information and rules of work. Also, there is a blog on the Medium platform, where articles are regularly published. The project website is designed in English.
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