Dual-Layer AMM Curve Design

Equalhub's AMM structure consists of Stable Layer + FX Layer.

Stable Layer (Same-Currency Stablecoin Pools)

Uses a Curve-like stablecoin curve (Newton-Raphson optimized) for swaps between stablecoins of the same currency family.

Examples:

  • USD Pool: USDC / USDT / DAI / USDY
  • HKD Pool: HKDH / HKDT / hUSDHK

Features:

  • Minimal slippage
  • Large trades without peg breaks
  • Aggregated liquidity within one pool

FX Layer (Cross-Currency FX Pool)

Trades between virtual pegged assets from each stablecoin pool (vUSD, vHKD, vJPY).

Uses a high-correlation asset curve + weight adjustment algorithm to simulate FX market spreads.

Trading Path Example:

USDC ↔ vUSD ↔ vHKD ↔ HKDH

Advantages:

  • Higher capital efficiency (no need to pair every cross-currency pool 1:1)
  • Shorter swap paths, better routing reachability
  • Controllable FX pool size, reduced LP capital fragmentation