StableSwap AMA Transcript

Automated market maker for stablecoins and wrapped tokens on Solana ☀️

By
Solana News
on
June 3, 2021
Category:
AMA

Andrew

You ready to start this thing? 


DylanMacalinao:

Let's do it!


Andrew:

1. So before we dive into yourproject, can you please introduce yourself and give us a littlebackground information on how you came to start Stable Swap?


DylanMacalinao:

So, the StableSwap founding team hasactually been building crypto projects together since 2017. In 2018,we launched a crypto fund administration platform backed by YCombinator and Coinbase. We also helped organize the first DeFicommunity events in San Francisco and Prague. Collectively, our teamhas experience shipping products at some of the largest techcompanies, including Facebook, Google, Coinbase, and OKEx.

In 2020, our team participated in andended up winning the first ever Solana Hackathon with an MVP versionof StableSwap. However, since Solana’s ecosystem was so limited atthe time, we didn’t see StableSwap as being able to provideimmediate value to users.

Based on how quickly Solana DeFi hasbeen growing these past few months, we feel that now is finally theperfect time to launch StableSwap :D


Andrew:

Yeah and if I'm not mistaken youlaunched yesterday is that correct?


DylanMacalinao:

Yupthat's correct! We've had the community test our devnet applicationover the past few weeks. And just yesterday, we launched ourapplication on mainnet at https://stableswap.pro


Andrew:

Well first of all congratulations!

Amazing so the time between the lasthackathon and yesterday is quite a gap. So you could say you and yourteam have been working very hard at perfecting your product?


DylanMacalinao:

Honestly, most of the product was donein the past 3 weeks. Since the November 2020 hackathon we wereworking on other projects. But early May was when we decided to jumpback into StableSwap and actually launch it.

Andrew:

Oh I see

So for those viewers who may notknow...


2. Can you explain to us what astable coin is and the significance of being able to swap betweendifferent stable coins?


DylanMacalinao:

Stablecoins are tokens designed tomaintain a fixed value. The most popular stablecoins on Solana areUSD Coin and Tether, which are both designed to always be valued atroughly the price of a U.S. Dollar.


For many transactions, e.g. buying anNFT, users may not want to deal with the changing prices of SOL.Additionally, traders may not always want exposure to volatile cryptoassets. Stablecoins provide users access to stable money that canstill interact with the Solana blockchain.

Depending on their use case, a usermight require a specific stablecoin. For example, the lending ratefor USDT might be higher than the USDC they’re currently holding.StableSwap would allow that user to swap their USDC to USDT with verylittle slippage (i.e. loss in expected value).

And because stablecoins are in suchhigh demand, anyone can earn low-risk returns by providing theirstablecoins as liquidity to other Solana users via StableSwap.


Andrew:

Okay so because it does not have thevolatility of SOL, it would be more appealing for users to purchasesomething in a stable coin if they do not want to risk that pricingchange?


DylanMacalinao:

Yeah, I've seen a lot of FUD withinmainstream audiences about paying in crypto, especially Bitcoin.

Many of these mainstream audiencesdon't realize there are also pegged tokens that are meant to keep acertain price.

And so I think there will be some usecases where people will want to denominate in a volatile asset likeSOL, as well as a stable asset like USDC.


Andrew:

Gotcha and with the launch of yourplatform hopefully it will allow SOL users to be more aware ofstablecoins as a whole to avoid the FUD


3. Do you ever plan on implementinga bridging system between different blockchains?


DylanMacalinao:

Bridges are definitely top-of-mind forour team.

One of the main features that drew usto Solana was its performance and scalability. We believe that Solanawill be the main settlement layer that connects many differentblockchains together. Because of this, bridges will be incrediblyimportant for accelerating Solana’s ecosystem.

One of StableSwap’s main use cases isto be the first touchpoint of liquidity for cross-chain bridges.We’re already working with solution providers for other majorblockchains.

Furthermore, in the coming months,we’ll be launching a StableSwap Community Fund that gives outgrants to projects building bridging systems with Solana, along withother projects that support StableSwap’s mission.


Andrew:

Wow launched yesterday and alreadyfocused on how to improve!


4. As the first project to provideliquidity for stablecoins and wrapped assets on Solana, how do youfeel about your project being a gateway into the Solana Blockchainfor new users?


DylanMacalinao:

As I mentioned earlier, we expect manycrypto users to bring assets over from other blockchains usingdecentralized bridges. However, one limiting factor that currentlyexists is a lack of liquidity for wrapped bridged assets, e.g.Wormhole USDC. StableSwap will be the gateway to swapping from themultiple wrapped versions of a token to the native Solana version.We’re actively working with the top wallets and cross-chain bridgesin the ecosystem to seamlessly integrate StableSwap’s liquidity.


Additionally, as one of the firstworking Solana dapps, we feel a huge responsibility to design ouruser experience and interface in a way that takes full advantage ofSolana’s superior technology. DeFi should be as easy-to-use as anycentralized application, including being mobile-friendly.


Andrew:

Great, so this responsibility you feelkind of leads me into my next question regarding your project beingfirst to market


5. As mentioned previously, you arethe first stable coin swap on Solana. That is a lot of pressure, howdo you think you and your team overcame these challenges andcontributed to the future of Solana?


DylanMacalinao:

Our team has been working in the DeFispace since before that term was created, so we have a lot ofexperience launching crypto projects.

For us our main focus is just to buildhigh quality products super fast, and try to bring more liquidity tothe Solana ecosystem.


Andrew:

Yeah no doubt, I bet working with thiskind of team really helped you develop your vision into an actualplatform that we have today!


6. I noticed on your site thatStableSwap mainly deals with USDC and USDT. Why is that?


DylanMacalinao]:

At the moment, USDC and USDT are theonly stablecoins being actively used on Solana.


Andrew:

Ah I see, so those are the only twostable coins on Solana as of now.


7. So do you think your swap isprepared to adapt to any additional stable coins that might be addedto Solana?


DylanMacalinao:

Definitely! We're actively exploringand working with other projects—our plan is to move fast and be thefirst source of liquidity for stablecoins and wrapped assetslaunching on Solana.


Andrew:

Amazing, adaptation to changes is keyin this DeFi market


8. Can you explain how yourStablecoin pool works and how providing liquidity benefits all users?How are liquidity providers rewarded?


DylanMacalinao:

Users can provide liquidity bydepositing any of the tokens that compose the pool. At the moment,liquidity providers are rewarded solely through a proportion of thetransaction fees of all trades in the pool. In the near future, andas relevant projects launch on Solana, we’ll be integratingadditional rewards based on staking and/or supplying liquidity toother protocols.

We’re also exploring ways in whichStableSwap itself can provide more incentivization for liquidityproviders, especially during the early days of the protocol.


Andrew:

Yeah so speaking of incentivization...


9. I noticed that there was no tokenthat came alongside your mainnet launch. Why is that?


DylanMacalinao:

Having been in crypto since before theICO days, we’ve seen countless projects that launch tokens thennever really materialize into anything. From day one, our primarygoal has been to launch a product that’s actually useful to theSolana community. Trying to release a token prematurely would havebeen a distraction to that vision.

We’ll launch a token as it makessense for the utility and decentralized governance of StableSwap.


Andrew:

Of course, so you want to wait until itjust logistically makes sense to introduce a token

as well as provide a good incentive forusers to buy into your token


10. Was your token-swap programbased on any existing platforms or did you have to build from scratchas the first stablecoin swap on Solana?


DylanMacalinao:

We used Solana’s Token Swap Programas reference. However, pretty much all of StableSwap’s contractshad to be written from scratch. In fact, code our team wrote can befound in the official Solana Program Library!

We also used the same math as Curve forour stable swapping mechanism.


Andrew:

Oh wow so Stable Swap is literallygoing down in history!

So this is going to be the lastquestion and always our favorite


11. Are there any new and excitingfeatures/updates that you can share with us today?


DylanMacalinao:

Thebig new feature for us is our launch to mainnet! Users can now swapbetween and provide liquidity for USDC and USDT on stableswap.pro.

In the next couple of weeks we'll bereleasing a new pool for a recently launched Solana stablecoin....

More to come on that soon :)


Andrew:

Awesome! Well be on the lookout forthat everybody!

Thank you for joining us today Dylan

Congrats to you and your team on yourlaunch and we are looking forward to see you guys keep on paving theway in the Solana ecosystem ?

Also thank you to everyone who came tosee this today !


DylanMacalinao:

Thanks!Best way to stay up-to-date with StableSwap is by following our Twitter:



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