Liquidity Seeding

As you build liquidity for fiat backed stablecoins, note that an FXPool is not a replacement to other pool types such as Uni v3 or Curve, but is instead an FX accurate supplement to overall on chain liquidity that works in tandem with external AMMs to achieve 24/7 FX trading.

Based on past performance of highly traded FXPools, we recommend the following Key Points:

Key Point #1: Pairing against volatile assets

Key Point #2: The 1:0.5 ratio

Key Point #3: Both the FXPool and an external pool should be seeded at a 50:50 LP ratio

Key Point #4: You should rely on this balance of market dynamics in Key Point #2 and avoid manually rebalancing your FXPool