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Stable Pools

Definition

Stable pools are specialized liquidity pools within decentralized finance (DeFi) protocols designed for trading stablecoins or other assets that are pegged to the same value, such as different versions of wrapped Bitcoin. These pools employ unique algorithms to minimize slippage and impermanent loss, offering highly efficient exchanges for assets with minimal price volatility relative to each other. They are a core component of decentralized exchanges and lending platforms. They facilitate large-volume, low-cost trades.