Dear PancakeSwap community and CAKE holders, we’re launching the PancakeSwap StableSwap today for you to trade stable pairs with a lower slippage. At launch, the first pair to be added for the StableSwap will be HAY-BUSD, other pairs for stablecoins and potentially other liquid staking BNB pairs will be added gradually.
What is PancakeSwap StableSwap?
This StableSwap is an implementation of Curve Finance’s AMM on PancakeSwap. Since stableswaps are restricted to similarly priced assets, impermanent loss is not as much of a concern (except in extreme depeg cases).
Why should I use the PancakeSwap StableSwap?
You’ll be able to swap your stablecoins or other pairs of similarly priced assets more efficiently with the same trade steps! With the StableSwap function, the trading slippage is lower than normal AMM which just uses the constant product formula, also, the trading fees are lower compared to the normal AMM as well. Learn more about it here and learn more about how to trade with the StableSwap here.
Migrate your HAY-BUSD Farm Staking
Before the StableSwap is launched, HAY-BUSD liquidity and LP farm is already available on PancakeSwap in its normal v2 AMM swap.
However, since we are launching HAY-BUSD as the first trading pair on our StableSwap, it is likely that most of you who would like to trade this pair will eventually move to the StableSwap instead of continuing using the v2 AMM swap.
Since most trading activities of HAY-BUSD will be on the StableSwap using the Stable LP going forward, CAKE incentives should be directed to reward the Stable LP stakers for encouraging them to provide the liquidity. There would be less activity for the original HAY-BUSD LP (with the v2 AMM).
If you’re currently not farming with HAY-BUSD LP, you don’t have to do any migration.
How to migrate:
There will be a one-day window starting from StableSwap launch (Sep 22 2022 11 AM UTC), and before the CAKE incentives are redirected and the new farm for HAY-BUSD Stable LP is launched (Sep 23 2022 11 AM UTC). Here’s what you should do if you are currently staking HAY-BUSD LP in the farm:
1 — Unstake HAY-BUSD LP from the farms page
2 — Remove liquidity of your HAY-BUSD LP at the liquidity page
3 — Add liquidity again for HAY-BUSD (this time you should see that you’re adding to Stable LP during the process)
4 — Stake your HAY-BUSD Stable LP in the farms page when it is launched — look for the card with the Stable LP label
What are the fees for the StableSwap?
When you make a token swap (trade) on the stableswap you will pay a fee of 0.04% trading fees, which is lower than the usual 0.25% on normal PancakeSwap AMM. For fee attribution, please refer to the document here.
Why is HAY-BUSD the first pair?
HAY from Helio Protocol is a fully decentralized, BNB overcollateralized destablecoin. The reasons the HAY-BUSD pair is selected as the first are:
Be one of the first major trading venues for HAY to absorb volume overtime
As HAY only recently launched (mid-Aug 2022) compared to other stablecoins, the volume and operational impact from liquidity transfer is more manageable to launch on the StableSwap product
Based on progress of this pair and community feedback, the Kitchen can gradually add other stable pairs
What are some of the features that the Kitchen is still fixing and cooking?
Better guides on UI regarding StableSwap and stable LPs
StableSwap information page
Adding more stable trading pairs, and the migration process of existing LPs
To learn more about this feature and how to operate it, please refer to our documentation here and here. We will continuously improve the experience, and welcome any feedback.