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:
Frictionless swap experience stabble offers a truly frictionless protocol where traders benefit from near-zero (maximum of 0.2%) price impacts, allowing for seamless execution of trades. stabble achieves this by executing fractionalized orders.
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.
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.
Perpetual DEX features stabble's perpetual DEX functionality adds another unique selling point to the protocol. Traders can effortlessly execute simple swaps, open leveraged long or short positions, and access real-time charts. This comprehensive trading interface brings traditional exchange-like features to the DeFi space, offering users advanced trading options and enhanced flexibility.
Unique token design stabble has its native token, $STB, which offers various benefits to token holders. Staking $STB tokens allow users to earn rewards, while locked $STB tokens are converted into veSTB tokens, which enable governance and fee discounts. Depending on the lockup period, the receiving veSTB amount follows a multiplier which means the staking APY and voting power can reach up to 4.32x. This unique token economy fosters long-term engagement and participation in the protocol's governance and reduces sell pressure.
Margin liquidity stabble uses margin liquidity, which is over 8,000 times more capital efficient than Uniswap’s V3 concentrated liquidity.
The team stabble’s team has built DeFi protocols with over $1.8+ billion TVL and holds a Ph.D. in Behavioral Finance (Arbitrage & DeFi Inefficiencies) and has released multiple scientific research papers in the DeFi field.
In summary, stabble's has developed the first DeFi ecosystem that enables frictionless experiences for both traders and liquidity providers by employing protocol-managed liquidity and arbitrage. This innovative approach addresses the key issues faced by users of traditional DEXs and paves the way for a more efficient and user-friendly DeFi experience.
Mission statement
At stabble, our mission is to build a fully comprehensive DeFi ecosystem that enables a frictionless experience for traders and liquidity providers. We identify four market participants that interact on a decentralized exchange. stabble's goal is to optimize conditions for liquidity providers and traders, replace the need for arbitrage traders, and eliminate attackers.
Trader and liquidity provider
stabble is designed to serve both traders and liquidity providers. These two parties have a symbiotic relationship. Traders benefit from the funds provided by liquidity providers to exchange assets. In turn, traders generate fees that serve as income for liquidity providers.
Arbitrage trader
The majority (up to 95 percent) of trades at AMM decentral exchange are arbitrage trades. Our analysis of peer decentral exchanges shows the consequences of arbitrage trades. Annually between (18-34%) of total pool liquidity is drained out, which leads to divergence losses (also called impermanent loss) for liquidity providers. Arbitrage traders profit from price differences within one or across many exchanges. They earn risk-free profits and support the convergence of the market and DEX price for a given coin. stabble has pools that are marked as arbitrage pools. For these pools stabble substitutes the traditional arbitrage trader. Liquidity provider receives extra compensation for gains that are earned with the help of stabble’s cross-exchange arbitrage bots. For more read about smart liquidity arbitrage.
Attackers
Attackers do not provide value to the system. Therefore, any form of exploit should be mitigated. There are various forms of exploits documented in the literature. A major inefficiency is miner extractable value (MEV) and liquidity provision attacks. stabble proactively works against any form of attack. Therefore stabble monitors all activities at the exchange and continuously updates its know-how with the help of the current knowledge of scientific literature. In the section of scientific literature, you will find the latest publications about decentral exchanges and on-chain activties.
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