Dynamic AMM Stable Pools

How do Dynamic Stable Pools work?

Meteora's Dynamic AMM Stable Pools are AMMs utilizing the stable curve that support token prices from 0 to infinity.

Stable Pools are suitable if both of your tokens are stable coins i.e. USDC-USDT, USDS-USDC. Using a Stable Pool helps ensure that the liquidity ratio between the token pair remains at 1:1.

Stable Pools also share similar benefits with the volatile Dynamic AMM Pools. For example, Stable Pools compose on top of Meteora’s Dynamic Vaults lending aggregator that rebalances funds (e.g. USDC/USDT/SOL) every minute across various external lending protocols e.g. Kamino, Save (Solend), and Marginfi to optimize yield and reduce risk.

This added yield helps drive sustainable liquidity, as it is attractive for LPs to contribute liquidity in the pool even if trading fees are lower than usual or there is a lack of LM rewards.

• Dynamic Stable Pools are concentrated, so they capture a lot more trading volume and fees.

• Dynamic Stable Pools earn from lending the idle liquidity out to external lending protocols.

• Dynamic Stable Pools do not require active LP management. You can set and forget it.

Dynamic Stable Pools have the Stable tag on the UI.

What is AMP in a Dynamic Pool with stable coin pairs (Stable Pool)?

The AMP (amplification) factor controls how concentrated the liquidity is in the stable pool, which relates to how far the ratio of 1:1 the assets will go before it starts to charge more for trades that further unbalance the ratio and charge less for trades that move the ratio of assets back to 1:1.