Liquidity
Liquidity Pools
Aborean Finance's primary purpose is to enable users to exchange tokens safely while minimizing both transaction costs and slippage.Slippage represents the discrepancy between a token's market value and the actual rate at which the trade or swap executes. This variation may result in obtaining less tokens (when the price rises) or additional tokens (when the price falls) than anticipated.The greater the liquidity within a pool (meaning higher total value locked), the reduced slippage it offers.
Token Classification
To provide users with the best available rates, we classify tokens into two categories:
Correlated - including stablecoins (e.g., $USDT, $USDC)
Uncorrelated – including $ABX and $ETH
Pool Types
Aborean Finance offers distinct pool variants, designed to match the characteristics of the token pair: Stable Pools, Volatile Pools, and Concentrated Pools. Additionally, custom pool factories enable adaptable development of new pool variants as required.
Stable Pools
Stable Pools are designed for assets exhibiting little to no price fluctuation. Their pricing algorithm guarantees minimized slippage even when processing trades with substantial volume.
a³b + b³a ≥ z
These mathematical formulas ensure that overall liquidity stays constant throughout the pool.The following chart contrasts the Stable (red) and Volatile (blue) AMM pricing curves, in which:
a = represents the quantity of the first token in the pool
b = represents the quantity of the second token in the pool
z = an unchanging constant value
Concentrated Pools
These pools necessitate either hands-on configuration or automated liquidity management (ALM).
Concentrated Liquidity Tick Spacing
Within Aborean's concentrated pools, tick spacing determines the minimum permitted price increment across liquidity intervals.
Highly correlated assets (stablecoins, liquid staking tokens) → 0.01% interval (tick space 1)
Stable token pools (e.g., USDC) → 0.5% interval (tick space 50)
Volatile token pools (e.g., ABX, ETH) → 2% interval (tick space 200)
Newly launched or developing tokens (e.g., ABX) → 20% interval (tick space 2000) to reduce rebalancing needsConcentrated pool identifiers indicate their classification. For instance:
CL1-wstETH/WETH
In this case, CL1 signifies a concentrated pool featuring tick spacing of 1, implying the assets demonstrate strong correlation.
Pool Fees
Swap fees can now be configured separately from pool classification. This enables fees to be matched with the needs of partner protocols and prevailing market dynamics.To streamline operations even more, Aborean is building a dynamic fee mechanism that adjusts automatically in real time.
Calculating APRs
Aborean determines APRs using distinct methods based on pool classification:
Basic pools - APR is computed using the total deposited liquidity.
Concentrated pools - APR accounts for the deposited liquidity in the pool's current price range (the active tick) alongside the adjacent ticks (+/-1).
Liquidity
Liquidity Pools
Aborean Finance's primary purpose is to enable users to exchange tokens safely while minimizing both transaction costs and slippage.Slippage represents the discrepancy between a token's market value and the actual rate at which the trade or swap executes. This variation may result in obtaining less tokens (when the price rises) or additional tokens (when the price falls) than anticipated.The greater the liquidity within a pool (meaning higher total value locked), the reduced slippage it offers.
Token Classification
To provide users with the best available rates, we classify tokens into two categories:
Correlated - including stablecoins (e.g., $USDT, $USDC)
Uncorrelated – including $ABX and $ETH
Pool Types
Aborean Finance offers distinct pool variants, designed to match the characteristics of the token pair: Stable Pools, Volatile Pools, and Concentrated Pools. Additionally, custom pool factories enable adaptable development of new pool variants as required.
Stable Pools
Stable Pools are designed for assets exhibiting little to no price fluctuation. Their pricing algorithm guarantees minimized slippage even when processing trades with substantial volume.
a³b + b³a ≥ z
These mathematical formulas ensure that overall liquidity stays constant throughout the pool.The following chart contrasts the Stable (red) and Volatile (blue) AMM pricing curves, in which:
a = represents the quantity of the first token in the pool
b = represents the quantity of the second token in the pool
z = an unchanging constant value
Concentrated Pools
These pools necessitate either hands-on configuration or automated liquidity management (ALM).
Concentrated Liquidity Tick Spacing
Within Aborean's concentrated pools, tick spacing determines the minimum permitted price increment across liquidity intervals.
Highly correlated assets (stablecoins, liquid staking tokens) → 0.01% interval (tick space 1)
Stable token pools (e.g., USDC) → 0.5% interval (tick space 50)
Volatile token pools (e.g., ABX, ETH) → 2% interval (tick space 200)
Newly launched or developing tokens (e.g., ABX) → 20% interval (tick space 2000) to reduce rebalancing needsConcentrated pool identifiers indicate their classification. For instance:
CL1-wstETH/WETH
In this case, CL1 signifies a concentrated pool featuring tick spacing of 1, implying the assets demonstrate strong correlation.
Pool Fees
Swap fees can now be configured separately from pool classification. This enables fees to be matched with the needs of partner protocols and prevailing market dynamics.To streamline operations even more, Aborean is building a dynamic fee mechanism that adjusts automatically in real time.
Calculating APRs
Aborean determines APRs using distinct methods based on pool classification:
Basic pools - APR is computed using the total deposited liquidity.
Concentrated pools - APR accounts for the deposited liquidity in the pool's current price range (the active tick) alongside the adjacent ticks (+/-1).