Vulture Finance

For improved capital efficiency, scalability, and user experience, Vulture has created a whole new type of stableswap. Vulture’s first important move in encouraging DeFi innovation in the Moonriver ecosystem will be this groundbreaking protocol. We’ll go through why and how Vulture can overcome the constraints of current stableswap protocols in this post.

Is a better stableswap even required? We believe that the DeFi space will greatly benefit from a paradigm shift with stableswaps. The current architecture utilized by stableswaps invariably leads to increased slippage and a poor user experience, limiting the protocol’s scalability and efficiency. Liquidity fragmentation leads to higher slippage The majority of extant AMMs, including stableswaps, have a closed liquidity pool architecture, which implies that liquidity is not transferred across various pools. Higher slippage is a guaranteed side-effect of such liquidity dispersion. 2. Complicated pool compositions lead to limited scalability and poor UX Existing stableswaps contain an equilibrium constraint, which states that all tokens in the pool must have the same level of liquidity. As a result, the pool’s least popular token will eventually function as a bottleneck to protocol growth, limiting the pool’s capacity to scale to include new tokens. Existing stableswaps attempt to solve this by pairing LP tokens with new tokens to accommodate this. Such a design is complicated, resulting in a bad user experience and the inability to replace current pools even when new assets appear (much like MIM versus DAI).

3. The penalty for a single token transaction is higher Depositing and withdrawing with a single token utilizing current stableswaps may result in a big penalty when it is large compared to the whole pool size, which might not be a concern for retail consumers, but gets more damaging the larger the transaction volume. This problem is an extension of legacy stableswaps’ scalability issues. Even if you deposit or withdraw a single token in bulk, Vulture will not charge you a penalty (or simply a modest cost). The solution then is to rewrite the rule If no significant improvements are made to the existing stableswap architecture, all of the above flaws will persist. The team behind Vulture has been working on a new mechanism that rewrites this DeFi rule, and we’ll start with a stableswap on Moonriver to challenge the status quo.

A comparison of Vulture and legacy stableswaps The solution is Vulture’s stableswap As previously stated, Vulture is intelligently designed to work around current stableswap constraints. We want to provide important advantages to the Moonriver DeFi space, such as:

1. Lower slippage In comparison to conventional stableswaps, the pioneering single-sided open liquidity pool supports improved capital efficiency, leading to decreased slippage.
2. Increased Scalability Vulture’s liquidity pools’ structure allows for scalability and flexibility. We can quickly add or remove new tokens from the main pool, allowing them to expand organically based on demand and availability. Furthermore, since consumers don’t have to worry about these sophisticated pool compositions, the UX will be substantially simplified.
3. Enhanced user experience Vulture’s exchange is designed to be simple to use. Users may always deposit and withdraw tokens of the same type, regardless of pool size or composition. What is the goal for Vulture? Although it may seem exaggerated, the stableswap is only the beginning of our journey. Vulture is predicted to be, in no time The dominant native stableswap on Moonriver. A DeFi protocol that pushes the boundaries of what’s possible.