Summary:
1. What is a StableSwap?
2. Planet’s Current Swap
3. What are 3G tokens?
4. How To Guide
5. Fees
6. Contract Addresses
February 1st, 2023 — We’re excited to announce that after months of hard work Planet’s StableSwap is finally live. You can now swap stablecoins on Planet’s protocol with minimal price impact due to the efficient use of liquidity. Instead of Planet having two separate swaps, Planet’s current swap & the new StableSwap share a single interface. This creates the best user experience enabling you to go from stables to non-stables without having to sign multiple transactions.
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What is a StableSwap?
The StableSwap is an autonomous market-maker (AMM) designed specifically for assets that are closely priced, like stablecoins. It aims to provide more efficient swaps with minimal slippage & low fees.
Originally, the Curve team created the first StableSwap algorithm.
Following the Curve Model, the StableSwap is designed to follow a combination of constant product (XY = constant) and constant sum (X+Y = constant) curve.
Simply put, the StableSwap has a “flatter curve”. For a user this means that they can swap larger amounts of stablecoins without moving the price drastically.
Planet’s Current Swap
So far, Planet’s current Swap utilizes the Uniswap style formula that follows an XY = constant Hyperbolic curve.
The XY = constant formula, is used to compute the number of tokens you’ll get when swapping. This also incentivizes swaps that balance the pool (by making the dollar value of the tokens in a pair equal) and penalizes users through price impact when they swap in a manner that skews the pools balance.
While this works great for swaps between coins of different prices, it poses some challenges for stable coins:
- Stable coins are ideally pegged to $1. No one wants to pay a huge premium on a swap between two coins that are closely priced.
- For swaps to cause less price impact, the liquidity in the pool must be very large in proportion to the transactions. This hurts the fees generated for those that provide liquidity as a majority of their supply is not being effectively used for the swap.
What are 3G tokens?
Planet’s first stable liquidity pool features 3 dollar backed stablecoins. To be clear these are dollar-backed stablecoins and are NOT algorithmic.
3G tokens are a tokenized representation of your stable liquidity that you have in the pool.
The starting price of each 3G token will be at $1.00. As the liquidity pool accrues fees, the USD value of each 3G token will grow in proportion.
These are the stablecoins that make up the 3G pool
- BUSD
- USDC
- USDT
How To Guide
- How to get 3G tokens (manually)
- Make sure you have some BUSD, USDC or USDT (Ideally an equal amount of each)
- Go to Planet’s liquidity page
- Click StableSwap
- Enter the amount of each token that you want to add as liquidity
- Click the Add Liquidity button
- Approve all 3 transactions that pop up (only needed for your first time)
- Click the Confirm button
2. How to get 3G tokens (using transform)
- Go to the Pools page
- Click on the 3G pool
- Click Transform
- Select the token and amount that you want to use to get 3G
- Approve if necessary and then Click Create LP
- Then deposit the tokens into the 3G pool to start earning
3. Supply 3G tokens to earn GAMMA rewards
- To further boost your rewards, supply your LP tokens by clicking MAX and Deposit on the 3G pool. You will now receive GAMMA rewards in addition to transaction fees.
- Just like the other pools and vaults, rewards in the 3G pool depend on your GAMMA holdings. Holding more GAMMA in your Infinity Vault will increase your earn rate.
4. How to convert 3G tokens (using Convert LP)
- Go to the Pools page
- Click on the 3G pool and withdraw any tokens you want to convert
- Click Transform, then click Convert LP
- Select the token that you want to receive and enter in an amount of 3G tokens to convert
- Click Convert
5. How to withdraw 3G tokens
- Enter an amount and then Click Withdraw
- You can then go the Liquidity page
- Click on the StableSwap card
- Click Remove
- Enter an amount of 3G tokens & choose the currency you want to receive
- Tip: If you select the 1st option that shows all 3 stablecoins, you can remove liquidity without an added fee
The Transform and Convert LP features enable you to add & remove liquidity easily on Planet. With a single click you can go from a token to an LP or from an LP to a token.
Fees
- Swap Fee: 0.03%
- Add Liquidity: 0.01125%
- Remove Liquidity:
1. 0% — if removed in a mixed manner
2. 0.01125% — if removed as a single coin - Farm Deposit Fee: 0%
- Farm Withdraw Fee: 0.1%
Contract Addresses
- StableSwap Factory: 0x662cde…e0ca66
- 3G StableSwap Contract: 0x99a32D…E605e8
- 3G LP Token: 0xC9440d…4A1A3b
- Planet Farm: 0x9EBce8…640cF9
- 3GStrategy on Planet Farm: 0x80f55A…cc25B6
