Features of Smoothy:
1 Reduce the gas fee significantly by algorithm optimization
Even deployed on Ethereum, the gas fee required by stablecoin swap on Smoothy is reduced by 90% compared to Curve’s yPool and mStable after the algorithm optimization. It achieves a lower gas fee without using layer2 and ensures composability.
2 Single pool supporting multiple stablecoins with better liquidity
Unlike Curve, which supports up to 4 stablecoins in one pool, Smoothy can support multiple stablecoins in one single pool, and can flexibly add/remove any token. Theoretically, Smoothy can accommodate hundreds of different types of stablecoins in one pool (even algorithm stablecoin). This means that Smoothy will not suffer from the fragmented liquidity of multiple pools, enabling better liquidity.
3 Maximum LP reward
With reference to the bank’s reserve system, we designed a unique Dynamic Cash Reserve Algorithm, which dynamically allocates the majority of funds in the underlying interest-earning platform and the rest is reserved to meet daily swap needs. In other words, in addition to governance token earnings, liquidity providers can gain swap fees together with interest earning and lower gas fee.
4 Zero-slippage swapping algorithm
Smoothy develops a SmoothSwap algorithm that can guarantee 1:1 ratio swap most of the time if the percentage of the token in the pool is lower than soft weights; if not, a swap is still allowed by imposing a penalty fee as slippage.