Zolidly is built to allow swapping of different ERC-20 tokens with minimal slippage on Ethereum and EVM compatible chains. Zolidly uses different AMM equations for both price correlated and non-price correlated assets as shown below.
1. Volatile Pools
Volatile pools are used to swap tokens that do not have a direct price correlation. For example, cryptocurrencies that have no price correlation with each other, such as ETH, UNI, and SUSHI. Volatile pools operate according to the AMM equation below.
x×y≥k
2. Stable Pools
Stable Pools allow assets that follow the same price to be swapped with minimal slippage through the AMM equation presented by Zolidly. The formula is below.
x3y+y3x≥k
Graphical Representation of The ve(3,3) Swap Curves
The blue curve visualizes the stable formula while the red curve shows the volatil