Another essential tool for teams, specifically on chains that are fairly new are stablecoins. Stablecoins are one of the most beloved assets in the past few years, theoretically offering users a safety net for their funds when they donโ€™t want to engage into any trading activities, or holding volatile assets.

A stable swap offers a reliable and efficient method for users to exchange stablecoins while maintaining price stability and reducing slippage. In order to operate a stableswap, users or developers of a project have to add stablecoins into liquidity pools. These liquidity pools will usually feature several stablecoins such as DAI, USDT, USDC, TUSD and many others. Liquidity providers are incentivized by earning fees from trades performed within those pools. An algorithm ensures that the reserves are always kept intact and balanced for the various stablecoins.

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