Fee war is hurting stableswap.
As competition for order flow intensifies, dexs are lowering the fee to capture more volume.
However, this also attract a ton of toxic swaps (MEV) because the exeuction costs drop (Fee compression).
In the past 6 months, stableswap's share of sandwich attacks over all pair has been rising drastically (Up to 54% this month and it's on ETH).
61% and 80% of stableswap volume on Maverick and Uni v4 are affected by toxic swap (MEV) when the pair is running in an ultra low fee environment, 0.001%.
One possible solution might be dynamic fee (E.g., @0xfluid) which is surprisingly good at stopping toxic flow (4.7% vs Uni v4 80%)
Because when the peg moves away from 1, fees increase and leaving less room for price exploit.
Another solution comes from @BarterDeFi, switching from constant product (X*Y=K) to constant sum (X+Y =K ? ) to eliminate toxic flow while giving good yields.
https://t.co/Lu4AcH11pa
As more stablecoin coming into blockchain, the toxic swap is a problem that all stableswap (Especially ETH) have to think about. Incentive only works for short but not for long term.
Good rate for swapper + Good yield for LP is how we keep the whale to go de-bank and swap on-chain.
* Credit @BarterDeFi and it's dashboard. If i have misread anything please let me know in the comment .
May 28 Update:
10 #Bitcoin ETFs
NetFlow: +2,889 $BTC(+$310.21M)🟢
#iShares(Blackrock) inflows 3,726 $BTC($400.13M) and currently holds 659,297 $BTC($70.8B).
9 #Ethereum ETFs
NetFlow: +16,049 $ETH(+$42.31M)🟢
#iShares(Blackrock) inflows 12,107 $ETH($31.92M) and currently holds 1,350,733 $ETH($3.56B).
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⚡️ $ETH / USDT — SPRINGBOARD SETUP LOADING! 🚀🔥
BOUNCE MODE ON — IS ETH READY TO POP? 💥📈
Ethereum just rebounded off a key dip zone after rejection at $2,700 ❌🔻. Now consolidating around $2,630 🌀 — bulls are gearing up for a breakout attempt! 🐂💪
Structure is tight, volume’s stable — this could snap quickly if support holds! ⚠️💣
🟢 LONG TRADE SETUP 🎯💸
🔹 Entry: $2,630.72 ✅
🔹 Take Profit: $2,674.12 🚀
🔻 Stop Loss: $2,608.40 🔒
📊 MARKET SNAPSHOT:
• Support must hold above $2,610 🧱
• Target zone near $2,674 is the next resistance wall 🧱📈
• Coiling price action = explosive potential brewing 💥📊
🧠 PRO TIP:
Volume confirmation and a clean 1H candle close above $2,640 = 🚦 green light to scale in with confidence!
#EthereumBounce 🔁
#ETHSetup 📈
#BullishMomentum 💪
#CryptoSpringboard 🚀
$ETH
{future}(ETHUSDT)