Dual-liquidity type

Each Camelot LP can have its own type, depending on the expected price correlation level between the two tokens of the pair.

Volatile pairs

Volatile pairs are composed of uncorrelated assets, based on the usual UniV2 model, using the standard constant product formula:

$$ x * y = k $$

Stable pairs

Stable pairs are used for correlated assets, and will try to maintain a 1:1 transfer ratio as much as possible. The formula is based on the well-known Solidly curve:

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