Dual-liquidity type

Each DonutSwap LP may possess a unique category based on the anticipated price correlation level between the two tokens within the pair.

For volatile pairs

Volatile pairs consist of uncorrelated assets and adhere to the conventional UniV2 model, employing the standard constant product formula:

$$x * y = k$$

Stable pairs

Pairs that remain stable are employed for correlated assets, aiming to uphold a 1:1 transfer ratio to the greatest extent possible. This formula is rooted in the renowned Solidly curve:

$$x^3 y + y^3 x = k$$