Calling All Arbitrageurs!
The Hummus Exchange has lowered the fees on the main stablecoin pool to 0.01% to encourage improved balance across the main pool. We are also lowering the fees on the alt pool (MAI/USDC) to 0.04%.
With lower fees, arbitrageurs and yield farmers are much better incentivized to unstake, swap, and deposit stablecoins — USDT, USDC, DAI, BUSD, and MAI — to achieve higher APRs.
This change aligns with Platypus Finance’s actions earlier this year. Essentially, swap fees were too high for the balancing mechanic to work effectively prior to this change. This change aligns with Platypus Finance’s actions earlier this year. Essentially, swap fees were too high for the balancing mechanic to work effectively prior to this change.
As a result, users should see more balance across the stablecoins’ coverage ratios as arbitrageurs move tokens from lower coverage ratio pools to higher coverage ratio pools. On Hummus, as on Platypus, higher coverage ratio pools offer higher APRs.
Once more bridges and avenues of arbitrage arrive, this is a fee we can likely increase again, thereby ensuring a healthy veHUM flywheel.
Users can withdraw and unstake stablecoins without losing their accumulated veHUM. Also, as a reminder, veHUM holders are currently earning a creamy METIS reward thanks to Metis Marathon incentives.
Just don’t unstake any HUM! veHUM boosts a user’s APR, and is accumulated over time by staking HUM. But, all veHUM is lost upon unstaking any amount of HUM.
Now get out there Metisians are start arbing!
About Hummus Exchange
The Hummus Exchange protocol is a single-side and decentralized AMM designed for exchanging stable cryptocurrencies on the Metis blockchain.
Users can swap stablecoins on the Hummus Exchange with extremely low slippage and fees. They can also stake stablecoins to generate yield, and stake HUM tokens alongside to boost that yield.
Come check us out! Stop by to swap or stake around for longer.