Why Use an FXPool?

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.

The “FX Invariant” vs StableSwap (Curve) vs Constant Product (Uniswap)

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

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

❌ Active FX LPs have to manually adjust LP range based on off chain market pricing

Last updated 1 year ago