# Why stabble

## Competitive advantages

The DeFi ecosystem has long been plagued by issues such as impermanent loss, low APY for liquidity providers, and high slippage and price impact for traders. stabble's addresses these problems with a unique approach:

1. **Capital efficiency**\
   All liquidity pools are designed in a way that they require significantly less liquidity - up to 97% less than competitors - while accommodating similar volumes. This results in higher capital utilization and APYs.<br>
2. **Protocol-managed liquidity**\
   stabble’s approach to liquidity management is a game-changer. By implementing protocol-managed liquidity, stabble reduces impermanent loss risks and maximizes APY for liquidity providers. This unique feature ensures that liquidity providers can enjoy higher returns compared to other protocols but also contributes to price stability by reducing price impacts.<br>
3. **Cross-exchange arbitrage pools**\
   A unique combination of arbitrage strategies on the one hand allows stabble to offer more efficient prices for traders and on the other hand to exclude external arbitrage traders. This innovative approach greatly reduces impermanent loss risks for liquidity providers while boosting their APY.<br>
4. **Margin liquidity**\
   stabble uses margin liquidity, which is over 8,000 times more capital efficient than concentrated liquidity.

## Mission statement

At stabble, our mission is to build the first protocol that enables truly frictionless experiences for both, traders and liquidity providers. This innovative approach addresses the key issues faced by users of other DEXs and paves the way for a more efficient and user-friendly DeFi experience.

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