This article by Inal Kardanov, Waves development advocate, will help you make sense of a new token on Swop.fi, USDC, and start earning on it.
Recently, a second stablecoin pair after USDT/USDN has become available on Swop.fi — USDC/USDN.
I think many of the readers are already familiar with USDN, a stablecoin on the Neutrino protocol available in many pairs on Swop.fi. Just like USDN, USDC has a 1:1 peg to USD. But, unlike USDN, this token, issued on the Ethereum blockchain by Circle and Coinbase, is centralized.
USDC is available in the Waves network thanks to Waves.Exchangegateways. Therefore, if you have USDC tokens in the Ethereum network, you can transfer them to the Waves ecosystem using the Waves.Exchangeinterface:
Features of the USDC/USDN pool
Most Swop.fi pools are based on the Constant Product Market Maker (CPMM) formula used by the Uniswap project and many other automatic market makers (AMM). According to that formula, the product of swapped token amounts remains constant:
A detailed explanation of how this formula works can be found in this article:
Another major difference of the USDC/USDN pool from most others is the reduced swap fee. While for all other pairs it is 0.3%, for the stablecoin pairs USDT/USDN and USDC/USDN, it is only 0.05%.
One of the new pair’s features is an option for providing liquidity in just one stablecoin rather than both of the pair’s stablecoins.
To provide liquidity, go to the “Pool” section (1), select the USDC/USDN pair (2) and click on “Add liquidity” (3):
Please, take a note that when you provide liquidity in both tokens, the smart contract could request their unequal amounts (1).