Smoothy Finance Launches Gas Saving DeFi Stablecoin Swaps

Share Article
In Brief
  • Low slippage stablecoin swaps available on Smoothy.

  • Multiple assets in a single pool avoids liquidity fragmentation.

  • SMTY token will be airdropped to users.

  • promo

    Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The Smoothy decentralized finance (DeFi) protocol is upgrading to bring more stablecoin swapping opportunities to the industry and further savings on transaction fees.

Smoothy will also be launching a yield farming incentive and airdrop on March 9 to celebrate the occasion.

First launched in September 2020, Smoothy addresses the problem of stablecoin swapping. Its new version upgrade will offer a single pool that can accommodate over twenty different stablecoins.

The protocol uses what it terms as ‘algorithm optimization’ to reduce gas fees to around 10% of what similar pools such as the Curve yPool and mStable offer.  

It claims to offer these huge savings on transaction fees without using Layer 2 scaling technology.

Low Slippage Stablecoin Swaps

Avoiding the problem of fragmented liquidity with various different pools, Smoothy provides a single pool that can accommodate multiple stable assets.

“Theoretically, Smoothy can accommodate hundreds of different types of stablecoins in one pool (even algorithm stablecoin).”

The design uses a unique ‘Dynamic Cash Reserve Algorithm.’ This dynamically allocates the majority of funds in the underlying interest-earning platform. The rest is reserved to meet daily swap needs resulting in better rewards for depositors. It also uses bonding curves to provide zero slippage swaps for many stablecoins.

Explaining further:

“Smoothy develops a SmoothSwap algorithm that can guarantee 1:1 ratio swap most of the time if the percentage of the token in the pool is lower than soft weights; if not, a swap is still allowed by imposing a penalty fee as slippage.”

The native SMTY token is used for governance purposes and collateral for adding new stablecoins. The Ethereum-based token will also be deployed on other chains in the future. This is according to the announcement which mentioned Fantom, Binance Smart Chain, and Heco.

The project was audited by PeckShield but posts the usual warnings about associated risks.

Smoothy Airdrop and Liquidity Mining

There is a 21-day yield farming incentive launching on March 9. Addresses that interacted with the Smoothy contract in some way will have the chance to get airdropped tokens.

Half the SMTY supply is reserved for community incentives including the liquidity mining program. Rewards will be distributed after a public token sale but no date was given for this.

Liquidity providers will earn 0.04% swap fees, any penalty fees incurred for swaps out of the protocol’s soft range or exchange rates, and interest.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Martin has been writing on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

Follow Author

Trade with the Best Crypto Signals - guaranteed profits with over 70% accuracy

Join now

Want to learn how to trade? Get a beginners guide from BeInCrypto Academy!

Learn now