JioSwap
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Jioswap is a cross-chain AMM protocol designed for trading stablecoins and tokenized crypto assets enabling low slippage and Interoperability between chains.
Jio's Algorithm
- Jio's StableSwap algorithm is based on a similar model as Curve.Fi , which uses a hybrid function market maker algorithm (HFMM). see AMM Defi Primer for more info on this particular implementation. The hybrid function market maker (JIo's StableSwap )uses a combination of the Constant Product and Constant Sum implementation.
- When a particular pool is balanced, the algorithm functions as a Constant Sum; formula x+y = k
- On the other hand as a particular pool on the platform becomes imbalanced , Jios algorithm functions as a Constant Product; formula : x * y = k.
Why is Jio Important
If a DeFi user is looking to swap $100,000 USDC to USDT , considering there’s sufficient amount of liquidity to do so. Using the traditional AMM such as Sushiswap, PancakeSwap, yokai swap etc. the minimum you’d receive would be roughly $98165.8 USDT and maximum would be around $98656.6 losing $1343.40 to $1834.2 in value. If you were to use Jioswap instead, you’d receive $99,849.8269 — almost zero slippage. Jio’s protocol is specifically designed for pegged assets, and as a result, it is much more efficient than an AMM such as Sushiswap that is not optimized to do so.