FAQs
Frequently asked questions about the NanoSwap.
Yes, the Algofi NanoSwap has been audited by Runtime Verification and NCC Group. See our audits here.
Since NanoSwap pools are only suited for stable asset pairs, there is a higher barrier to pool creation compared to typical constant product pool. The initial pools were seeded by Algofi, with future pools to be added via a governance vote. In the meantime, if you'd like to list a stable asset pair please reach out to Algofi.
NanoSwap pools use a computationally intensive invariant that requires more computational budget. Since AVM 1.1, this computational budget is secured via calling inner transactions from the contract. The increased fee is used to cover those transaction costs.
NanoSwap pools utilize the stable swap invariant which concentrates liquidity around an exchange rate of roughly 1-1 for stablecoin pairs (STBL/USDC, STBL/USDT, USDC/USDT). This is reasonable because the stablecoins are inherently worth ~$1. As such, the pool experiences less slippage than vanilla constant product pools like those in the Algofi DEX. Also, the exchange rate changes more slowly in response to pool ratio changes depending on the level of liquidity in the pool. For example, a pool with 1.19M USDC, 1.43M STBL has an exchange rate of 1 STBL = 0.984 USDC while a constant product pool has an exchange rate of 1 STBL = 0.83 USDC.
The speed at which the exchange rate changes in response to pool ratio changes is driven by the amplification factor, a parameter of a NanoSwap pool. The higher the amplification factor, the less the exchange rate changes in response to pool ratio changes. See Protocol Parameters for more information.
There are some issues with the Algofi app that are still being worked on and improved. In some instances app.algofi.org loads to a blank white page for a given user. This is usually a result of stale data in that user's cache.
This is a hard problem for the Algofi team to robustly debug and fix as these issues are usually not replicable by the development team. That being said, Algofi continues to locate and remove possible sources of this issue. In turn, the frequency of occurrence continues to decrease.
Please clear your cache if you experience this issue and it should immediately resolve.
Last modified 1yr ago