Composable Stable Pools

The Essence of "Composability"

Composability in pools implies the pool's ability to facilitate swaps to and from its LP token. When the LP token integrates into other pools ("nesting"), it streamlines Batch Swaps, fostering seamless transitions from nested to external pool tokens.

Illustration: Consider a Composable Stable Pool consisting of DAI, USDC, and USDT. By pairing its LP token (JPT) with SEI in a Weighted Pool, the nested structure merges liquidity into popular combinations, providing unparalleled depth and pricing advantages on JellySwap.

Pre-minting Mechanism

To enhance efficiency, these pools preemptively mint an infinite supply of their LP tokens during creation. This setup minimizes gas expenses, pivoting from the conventional mint/burn approach to a more efficient transfer system during joins and exits.