Pools
Baso Finance is a platform designed to facilitate the secure trading of digital assets, with the added benefits of minimal fees and low slippage.
In the context of trading, slippage refers to the discrepancy between the expected market price of an asset and the price at which the trade is actually executed. This variance can lead to either a smaller or larger amount of the desired tokens being returned from a trade, depending on whether the price paid was higher or lower, respectively.
To ensure our users have access to the most competitive rates in the market, we categorize assets into two distinct types:
Stable assets, such as stable coins ($USDC, $DAI, etc.)
Volatile assets, such as $LINK and $CRV
Based on the requirements of different token pairs, Baso Finance provides two types of liquidity pools: Stable Pools and Variable Pools.
Our protocol router assesses both types of pools to ascertain the most efficient price quotation and trade execution route. To safeguard against flashloan attacks, the router employs 30-minute TWAPs (time-weighted average prices). Notably, the router does not necessitate external maintenance or upkeep.
It's important to note that the depth of liquidity in a given pool (or the higher the value locked) correlates to lower slippage. This means that the more liquidity a pool has, the less slippage it will offer to traders.
Last updated