Exploring stabble: Revolutionizing DeFi with Advanced Arbitrage and Liquidity Solutions
Kilian Krings, CEO of stabble, delves into the project's innovative strategies for optimizing cross-exchange arbitrage, enhancing liquidity provision, and fostering sustainable growth within the DeFi ecosystem on Solana.
How does stabble's cross-exchange arbitrage strategy work, and what benefits does it offer to liquidity providers?
K: stabble's cross-exchange arbitrage strategy employs bots to monitor asset prices across all major Solana DEXs. When a profitable arbitrage opportunity is identified, it is executed immediately. This strategy helps in two ways:
1. It allows our protocol to maintain competitive prices by adjusting them to the ecosystem-wide standard.
2. Liquidity providers earn fees from the arbitrage profits.
Can you elaborate on how stabble achieves near-zero price impact trades for users?
K: Yes, we achieve this through our smart order execution feature. This feature breaks high-impact swaps into smaller orders, allowing our protocol to readjust liquidity and prices after each swap. This helps keep price impacts below 0.2%.
Could you explain the concept of virtual margin liquidity and how it enhances capital efficiency for liquidity providers?
K: Virtual margin liquidity allows liquidity providers to borrow additional funds to increase their position, similar to margin trading. This approach enhances capital efficiency by allowing providers to leverage more funds.
What incentives do $STB token holders have for staking, and how does the veSTB token function within the protocol's governance structure?
K: The primary incentive is financial, as we distribute 14% of all protocol-generated fees to our staking pool. This creates a long-term, sustainable, and non-dilutive staking program. When users lock their STB tokens, they are automatically converted into veSTB tokens, which grant governance rights not available to regular STB holders. Depending on the lock duration, a multiplier of up to 4.3x is applied, enhancing staking rewards and voting power.
What strategies does stabble employ to minimize divergence loss and impermanent loss for liquidity providers?
K: We increase capital efficiency with our improved pools and liquidity types, such as margin liquidity. Additionally, features like smart liquidity routing allow users to contribute liquidity to multiple pools without manual rebalancing. Our on-chain arbitrage pools serve as a natural hedge against providing liquidity, and a balanced mix of liquidity pool exposure and arbitrage pools helps mitigate impermanent loss.
What resources does stabble provide to educate its community on DeFi protocols and smart liquidity management?
K: We offer several resources, including:
Our technical whitepaper: Whitepaper, an academically rigorous document.
Our documentation: Documentation.
Social media channels like Medium, X, Discord, and Telegram, where users can find educational content.
How does stabble’s fee structure adapt over time to attract liquidity providers and ensure sustainable pool growth?
K: We implement time-adjustable fees, allowing pool owners to modify fees over time. This flexibility helps adjust fees according to market conditions and pool activity.
What are stabble’s plans for integrating with additional decentralized and centralized exchanges to enhance its DeFi ecosystem?
K: We have several integrations lined up, such as with Jupiter and Solana-specific wallets like Phantom and Solflare. We are connected to major decentralized Solana exchanges like Raydium and Orca. Currently, we do not plan to integrate with centralized exchanges, as we are committed to a fully decentralized approach.
