# Liquidity Pools

At WoofSwap, we aim to provide users with a secure way to trade digital assets with low fees and minimal slippage. Slippage can occur when there is a difference between the current market price of an asset and the price at which the actual trade/transaction is executed, resulting in a lower or higher amount of desired tokens received from a trade.

To ensure access to the best rates on the market, we focus on two types of assets: correlated and uncorrelated. Correlated assets such as stablecoins ($USDC, $DAI, $SHI, etc.) and uncorrelated assets such as $SHIB and $BONE.

We offer two distinct liquidity pool types: **Stable Pools and Volatile Pools**, catering to different token pair needs. Our protocol router evaluates both pool types to determine the most efficient price quotation and trade execution route available. To prevent flashloan attacks, our router employs 30-minute TWAPs (time-weighted average prices) and doesn’t require external upkeep.

In the future, we plan to introduce a third type of liquidity pool: **Concentrated Pools**, which allows users to customize the range of liquidity offered. More details on this will be announced in the future.

Higher value-locked liquidity pools ensure minimal slippage, providing our users an optimal trading experience.

### Fees <a href="#fees1" id="fees1"></a>

At WoofSwap, trading fees are kept in the originally traded tokens.

For Stable and Volatile Pools, the trading fee is set at `0.02%` and can be adjusted up to`0.05%`. For Concentrated Pools, the trading fee rate may be higher.

We offer the flexibility to assign different trading fees for different liquidity pools on WoofSwap.

### Stable Pools <a href="#stable-pools" id="stable-pools"></a>

Stable Pools are designed for assets that have little to no volatility. The pricing formula for Stable Pools allows for low slippage even on large traded volumes:

`x³y + y³x ≥ k`

### **Volatile** Pools <a href="#variable-pools" id="variable-pools"></a>

Volatile Pools are designed for assets with high price volatility. These pools use a generic AMM formula:

`x × y ≥ k`

### Concentrated Pools <a href="#concentrated-pools" id="concentrated-pools"></a>

TBD


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