Thorn Protocol has partnered with Oasis to build a native Stableswap Protocol on Sapphire, backed by a grant of $30K to push the boundaries of stablecoin exchanges. This initiative is critical for fostering concentrated liquidity within the ecosystem, significantly reducing slippage of stablecoin assets and enhancing composability across ecosystem dApps.

Stableswaps, employing an Automated Market Maker (AMM) system, are designed to facilitate the exchange of stablecoins with the least slippage possible. Unlike traditional AMMs that can exacerbate price volatility for stablecoin pairs, stableswaps use sophisticated formulas to adjust liquidity parameters dynamically, ensuring efficient trades.

They achieve this through an invariant formula that automatically adjusts the prices based on liquidity and trading volumes, maintaining a constant value ratio, typically around 50:50, between the paired stablecoins.

“Our partnership with Thorn Protocol helps build out Sapphire’s liquidity infrastructure to include additions such as stable-swapping,” said Will Wendt, Ecosystem Growth Manager at Oasis. “By integrating innovative solutions like the Stableswap Protocol, we are setting new benchmarks for performance and reliability for our developers and users on Sapphire.”

Scheduled for a late Q2 launch, the protocol includes launching the stable swap protocol on both Sapphire testnet and mainnet, coupled with the development and integration of an Abstraction Wallet (called AI Wallet) for smart trading strategies

“Stableswaps will enable stablecoin trades with minimal impact on price stability,” explained Jake Nguyen, CEO at Thorn Protocol. “Our goal is to replicate and refine the concentrated liquidity model using Sapphire’s confidential EVM technology to ensure seamless, cost-effective transactions for our users.”

To keep up with Thorn’s Stableswap Protocol progress on Oasis, follow Thorn on Telegram and X.