Prior to concentrated liquidity, Uniswap v2 pairs were the standard for DeFi liquidity. Ramses implements these traditional pairs alongside stable pairs for correlated assets.
Swaps
Each quote follows the pool's invariant, reserve ratio, trade size, and swap fee. Arbitrage helps keep the pool price aligned with the broader market.
Pair Types
Ramses features two types of Liquidity Pairs, each with its own swap curve:
Volatile (Uniswap v2): Uses the constant-product curve for assets that can move independently.
- Volatile swap formula:
x * y = k.
- Volatile swap formula:
Stable (Correlated): Uses a curve designed for correlated assets such as stablecoins, providing lower slippage near their shared target price.
- Stable swap formula:
xy(x^2 + y^2) = k.
- Stable swap formula:
Swap Curves
Visualization
The graph below compares the correlated and volatile swap curves between 0 and 100, illustrating their different behavior near a balanced 1:1 price.
Fee Structure
Pairs
Legacy LP tokens can be staked in an active gauge to earn RAM emissions. The more xRAM votes a pair receives, the more RAM its gauge receives in the following epoch.
Fees & Rewards
Stake legacy LP tokens in an active gauge to earn RAM emissions and any additional gauge rewards shown in the app. By default, gauged-pool swap fees go to xRAM voters. If a pool does not have a gauge, 95% of swap fees remain in the pair and increase LP-token value, while 5% goes to the protocol/Sarcophagus.