A decentralised stablecoin exchange on Tezos allowing users to trade similar assets with low slippage.

The problem Liquibrium solves

With Liquibrium, users don't have to incur high slippage for exchanging tokens that should ideally trade 1:1. This is made possible by a bonding curve that more accurately models the dynamics of stablecoin pools. It is a mixture of constant sum and constant product market maker formulas that aims to provide the best of both worlds.

Liquidity providers can also provide liquidity with little to no impermanent loss. Since the tokens in stablecoin pools are pegged or move together, liquidity providers don't run the risk of holding rapidly appreciating or deprecating assets that may not move together.

Challenges we ran into

  1. The project has a lot of moving parts and integrating them to work together was a challenge in itself.
  2. The most difficult part was to implement the invariant function. The mathematical model for this AMM is quite involved and it took us many tries to get it right.
  3. An acute lack of SmartPy documentation on platforms like Tezos StackExchange created another challenge and we had to pour in hours to fix the bugs.