Stability Pool

The stability pool offers a way for anyone to trade the premium value of a Boosted LP Token.

THIS FEATURE HAS BEEN DEPRECATED

Feature has been deprecated and removed on commit ebcced77f27e49de57923ea4dfcf952bbfdc01ec

The Stability pool is a Uniswap V3 Position represented by a Range Pool with the underlying assets (aka the LP pair) being:

• BLP = Base Asset + Premium = ETH/USDC + Boosted fees

• Base Asset = ETH/USDC

Liquidity providers will also receive trading fees from the Stability pool in the form of BLP and Base Asset. It is important to note that neither tokens in the Stability Pool receive trading fees from their wrapped liquidity position.

Since BLP tokens receive higher fees than plain liquidity providers, the stability pool provides the necessary means for the market to price in that premium.

Liquidity in this pool will most likely settle with the rewards being equal or higher than the fees received from the Base Asset.

The breakdown of the pool is as follows: BLP(BaseAsset(ETH/USDC) + Premium(BoostedFees)) / BaseAsset(ETH/USDC)

Because the pool consists of two similar assets the Uniswap v3 position of the Stability Pool can be set at a tight range enabling deeper liquidity compared to pools with two distinct assets.