Why Use an FXPool?
Last updated
Last updated
Xave is essentially a Uniswap or Curve equivalent, but purpose built for 20x more capital efficient stablecoin FX. Click here for a live example
Xave has brought liquid FX markets to DeFi, via its’ novel FXPools built on the Balancer v2 Vault. Stablecoin issuers (Circle, Stasis, VNX, StraitsX, etc) have created FXPools for their stablecoins on Xave and, during 2023, saw ~$53M worth of forex trades settled on the platform across multiple Euro, Swiss Franc, Singapore Dollar, Pound Sterling and even gold.
Read detailed invariant behavior here https://docs.xave.co/product/amm.
The novel “FX Invariant” is built and optimised for;
24/7 FX trades (even on weekends!)
Auto rebalancing FX LP ranges (unlike Uni v3 that needs manual range management)
Bringing live off chain price on chain (because FX markets trade off chain, not on chain)
| Property | RWA Pool | StableSwap | Constant Product | Concentrated Liquidity |
|---|---|---|---|---|
Built for RWA and StableSwap?
RWA StableSwap
Only for like-priced stablecoin trades
Only for general cryptocurrency trading
Only for general cryptocurrency trading
Capital Efficient for RWA?
Yes “$1M TVL enables ~$500k market accurate trading”
No Needs ~$20M in liquidity to enable ~$500k market accurate trading
No Needs >$20M in liquidity to enable ~$500k market accurate trading
Yes
LP Management
Passive Real time market pricing via oracle feed integration Auto LP range adjustment via oracle feed
Passive
Passive
Active FX LPs have to manually adjust LP range based on off chain market pricing