Understanding Validly

Validly's AMM can be configured to one of the following two options:

Stable AMM: Follows the design pioneered by Solidly, allowing users to trade any two pegged assets with very low price impact, such USDC and USDT or other stablecoins, liquid staking derivatives, etc.
Constant Product AMM: Same AMM design as UniswapV2 and its forks. It supports trading for any two assets.

By implementing the above as a Valantis Liquidity Module, we get the following advantages:

It becomes easy to customize Validly's implementation with novel modules, including price and volatility oracles, dynamic fees that protect LPs from quoting at stale prices, access-restricted Validly pools, novel tokenomics via a Gauge Module, etc, without any code changes on the existing Validly Liquidity Module. In contrast, existing implementations are monolithic and would have to re-build the liquidity pool smart contract from scratch.
Native support for rebase tokens, such as stETH and USDM, thanks to the Sovereign Pool's native support for these kinds of assets.
Having a familiar AMM design which can be implemented on Valantis in a few lines of code, serving as a simple to understand example for developers wanting to integrate with or build on Valantis' Core Protocol.

Last updated 6 months ago

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Validly's AMM can be configured to one of the following two options:

Stable AMM: Follows the design pioneered by Solidly, allowing users to trade any two pegged assets with very low price impact, such USDC and USDT or other stablecoins, liquid staking derivatives, etc.
Constant Product AMM: Same AMM design as UniswapV2 and its forks. It supports trading for any two assets.

By implementing the above as a Valantis Liquidity Module, we get the following advantages:

It becomes easy to customize Validly's implementation with novel modules, including price and volatility oracles, dynamic fees that protect LPs from quoting at stale prices, access-restricted Validly pools, novel tokenomics via a Gauge Module, etc, without any code changes on the existing Validly Liquidity Module. In contrast, existing implementations are monolithic and would have to re-build the liquidity pool smart contract from scratch.
Native support for rebase tokens, such as stETH and USDM, thanks to the Sovereign Pool's native support for these kinds of assets.
Having a familiar AMM design which can be implemented on Valantis in a few lines of code, serving as a simple to understand example for developers wanting to integrate with or build on Valantis' Core Protocol.

Last updated 6 months ago

Was this helpful?