Liquidity Pools

Hakifi offers two distinct liquidity pools to users: the Stable Pool and the Volatile Pool.

Volatile Pools are volatile pools of liquidity (similar to Uniswap v2) among asset classes with volatile prices following divergence. For example USDC vs MON or ETH vs MON.

Volatile pairs are formed by combining uncorrelated assets, and they utilize the conventional Uniswap V2 model with the standard constant product formula.

Stable Pools are pools of stable liquidity similar to Curve) between asset classes with low-volatility prices compared to others. For example USDT vs USDC.

Another case is derivative assets, for example, mETH and ETH. Although ETH is a volatile asset, the trading pair between mETH and ETH should be considered a stable pool because the price of mETH does not fluctuate too much compared to ETH.

Stable pairs on Hakifi are designed for correlated assets and aim to maintain a 1:1 transfer ratio between them as much as possible.

Earning trading fees

Whenever someone trades on Hakifi, for each hop (swap) in each Exchange V2 liquidity pool, the trader pays a fixed 0.25% fee, of which 0.17% is added back to the Liquidity Pool in a form of trading fees.