# Stableswap

Kayak StableSwap is an implementation of an Automated Market Maker (AMM) that adds a linear invariant constant sum curve (x+y=k) on top of the constant product formula (x*y=k) as long as the liquidity pool is not extremely unbalanced to keep prices more equal.

As a result, since StableSwaps are restricted to similarly priced assets, impermanent loss is not as much of a concern (except in extreme depeg cases), and the slippage is lower than in normal AMMs that only use the constant product formula.

Kayak Finance aggregates liquidity into one pool for trading, reducing asset losses caused by low liquidity and improving asset utilization.

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