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  "id": "stableswap-pools",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/stableswap-pools/",
  "collection": "defi",
  "title": "StableSwap pools: low slippage near balance and risk away from it",
  "description": "Understand the curve behind low-slippage stable-asset swaps and why that curve does not guarantee a peg or safe withdrawal.",
  "aliases": [
    "Curve StableSwap amplification explained",
    "how does StableSwap amplification work"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "StableSwap concentrates exchange liquidity near an intended balance between related assets. Its invariant behaves more like constant sum near balance and moves toward constant-product behavior as inventory becomes uneven. The amplification parameter controls that shape; it cannot make a failing asset worth its intended reference value.",
    "claimId": "stableswap-pools-quick-answer",
    "sourceIds": [
      "x425-defi-curve-stableswap"
    ]
  },
  "keyFacts": [
    {
      "label": "Near balance",
      "value": "The curve is relatively flat near its intended balance.",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ],
      "id": "near-balance",
      "claimId": "stableswap-pools-fact-near-balance"
    },
    {
      "label": "Amplification",
      "value": "Lower amplification moves the design closer to constant product.",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ],
      "id": "amplification",
      "claimId": "stableswap-pools-fact-amplification"
    },
    {
      "label": "Imbalance",
      "value": "The curve changes behavior as one asset becomes scarce.",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ],
      "id": "imbalance",
      "claimId": "stableswap-pools-fact-imbalance"
    }
  ],
  "prerequisites": [
    "constant-product-pools"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "Separate a useful curve from a price guarantee",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ],
      "paragraphs": [
        "Imagine a pool designed for two assets normally exchanging near one-to-one. Small trades around balanced inventory can receive rates close to that ratio. If users consistently sell A to receive B, the pool accumulates A and loses B. The next quote reflects that changing inventory.",
        "If A’s external value deteriorates, a mechanically quoted exchange does not repair its backing. LPs can end up holding more of the less desirable asset."
      ]
    },
    {
      "id": "parameter",
      "heading": "Amplification is a modeling choice",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ],
      "paragraphs": [
        "The original paper’s amplification analogy describes the shape and concentration of liquidity. It is not a statement that the LP personally borrowed a stated multiple of their deposit. Actual implementations also have fees, asset scaling and version-specific controls."
      ]
    },
    {
      "id": "scope",
      "heading": "Use the whitepaper for mechanics",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ],
      "paragraphs": [
        "The cited 2019 paper includes historical simulations and return figures. They are not current yields and are not adopted as forecasts here. A practical pool assessment also needs the exact asset contracts, current balances and contract version; the words stable pool do not identify those dependencies."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does low slippage make a stable pool risk-free?",
      "answer": "No. The invariant can improve execution around its intended balance while depositors remain exposed to asset and implementation failures.",
      "sourceIds": [
        "x425-defi-curve-stableswap"
      ]
    }
  ],
  "claims": [
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      "statement": "StableSwap concentrates exchange liquidity near an intended balance between related assets. Its invariant behaves more like constant sum near balance and moves toward constant-product behavior as inventory becomes uneven. The amplification parameter controls that shape; it cannot make a failing asset worth its intended reference value.",
      "sourceIds": [
        "source-09a449a9370225aa"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-09a449a9370225aa",
          "locator": "Invariant comparison; Amplification coefficient"
        }
      ],
      "scope": {
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      "qualification": "",
      "evidenceStatus": "documented",
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        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked Curve StableSwap paper: near-peg efficiency and imbalance response; amplification does not supply collateral or guarantee peg."
        ]
      }
    },
    {
      "id": "stableswap-pools-fact-near-balance",
      "articleSlug": "stableswap-pools",
      "statement": "Near balance: The curve is relatively flat near its intended balance.",
      "sourceIds": [
        "source-09a449a9370225aa"
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      "sourceLocators": [
        {
          "sourceId": "source-09a449a9370225aa",
          "locator": "Invariant comparison; Amplification coefficient"
        }
      ],
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        "notes": [
          "Checked Curve StableSwap paper: near-peg efficiency and imbalance response; amplification does not supply collateral or guarantee peg."
        ]
      }
    },
    {
      "id": "stableswap-pools-fact-amplification",
      "articleSlug": "stableswap-pools",
      "statement": "Amplification: Lower amplification moves the design closer to constant product.",
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        "source-09a449a9370225aa"
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        {
          "sourceId": "source-09a449a9370225aa",
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        "notes": [
          "Checked Curve StableSwap paper: near-peg efficiency and imbalance response; amplification does not supply collateral or guarantee peg."
        ]
      }
    },
    {
      "id": "stableswap-pools-fact-imbalance",
      "articleSlug": "stableswap-pools",
      "statement": "Imbalance: The curve changes behavior as one asset becomes scarce.",
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        "source-09a449a9370225aa"
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      "sourceLocators": [
        {
          "sourceId": "source-09a449a9370225aa",
          "locator": "Invariant comparison; Amplification coefficient"
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        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked Curve StableSwap paper: near-peg efficiency and imbalance response; amplification does not supply collateral or guarantee peg."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-defi-curve-stableswap",
      "label": "StableSwap whitepaper",
      "publisher": "Curve Finance",
      "url": "https://docs.curve.finance/assets/files/whitepaper_stableswap-fc0bb370db9fe3a91afdde8662e78206.pdf",
      "locator": "Invariant comparison; Amplification coefficient",
      "note": "Historical curve mechanics only; historical performance marketing not adopted.",
      "version": "Michael Egorov, 2019-11-10 whitepaper",
      "checkedAt": "2026-10-02T18:53:20.187Z",
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  ],
  "related": {
    "articles": [
      "liquidity-pools",
      "slippage-and-price-impact",
      "weighted-liquidity-pools",
      "single-sided-pool-deposits"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “StableSwap pools: low slippage near balance and risk away from it.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/stableswap-pools/"
}