Great to be a part of this development. We keep pushing.
Welcome 
BRO to the same person
I’m glad to be part of Legion.
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Lets build for the future
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Nice initiative ! lets keep the forum active !!
happy to be here keep building
nice initiative, happy to be here.
glad to be arround keep the great work
One thing I find interesting about Stabilizer is the focus on zero-slippage swaps for stablecoins and correlated assets.
For users, predictable execution is a big advantage, especially when swapping larger size.
But I’m curious about the risk side too.
Since correlated assets can still lose their peg or become imbalanced during volatile market conditions, what kind of safeguards should Stabilizer prioritize to protect users and liquidity providers?
Would love to hear the community’s thoughts on this.
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keep building for the future
Welcome bro, it’s highly interesting
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Great question, this is exactly the kind of discussion we need here.
You’re right that correlated assets can depeg, which is why we built multiple layers of protection specifically for this scenario.
The Emergency Depeg Fee System
This is Stabilizer’s core innovation for protecting LPs during depegs.
How it works:
We continuously monitor stablecoin prices across multiple venues (e.g., Uniswap, Curve, Chainlink, and other sources depending on the stablecoin). When a depeg is detected, the system calculates a Time-Weighted Average Price (TWAP) across all venues and automatically adjusts swap fees.
The key insight: Emergency fee = depeg magnitude
Example: USDT depegs to $0.97 (3% depeg)
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Without protection: Arbitrageurs buy USDT at $0.97, swap on Stabilizer at $1.00 internal rate, profit 3%
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With emergency fee: Fee automatically becomes 3%, exactly matching the depeg
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Arbitrage profit: 3% - 3% = 0%
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Result: LPs are protected
Why multi-venue TWAP matters:
Single-venue monitoring is vulnerable to manipulation. Averaging across multiple venues means an attacker would need to manipulate ALL venues simultaneously to trigger false fees. This makes the system manipulation-resistant.
Protection thresholds:
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0-10% depeg: Emergency fee = depeg percentage (LP losses eliminated)
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10% depeg: Pool auto-pauses (likely indicates fundamental asset failure)
Risk Assessment Framework
We’re also publishing a comprehensive risk framework for evaluating which stablecoins to add. It includes:
Preliminary screening: 8 deal-breaker requirements (audited contracts, minimum liquidity, operational history, etc.)
Multi-factor assessment: Peg stability, liquidity depth, DeFi concentration analysis, smart contract risk, issuer transparency
DeFi liquidity concentration: This is unique to Stabilizer. We check DefiLlama to see if a stablecoin is overly concentrated in a single protocol (e.g., 90% TVL in one lending market). High concentration = higher systemic risk.
External validation: We reference Bluechip.org’s SMIDGE ratings as complementary validation.
Acceptance thresholds: Very Low Risk assets can be added. Medium and High Risk requires further review + safeguards.
The full framework will be posted on Discourse for community review.
Why This Matters
Traditional AMMs suffer LP losses during depegs because they have no protection mechanism. A 5% depeg can cause 2.5% LP losses as arbitrageurs drain the pool.
Stabilizer eliminates this.
Depegs up to 10% cause no LP losses because the emergency fee makes arbitrage unprofitable. Only catastrophic failures (>10%, suggesting the asset is dying) trigger pool pauses.
We’re starting with high-quality stablecoins and over time may explore assets with different risk profiles as the protocol matures and community governance evolves.
Additional Safeguards
Beyond emergency fees and risk assessment, the protocol includes 12 built-in safety mechanisms that protect users and LPs at the smart contract level:
Read more about protocol safety: https://stabilizer-1.gitbook.io/stabilizer-docs/general-information/safety-checks
Read more about fees: https://stabilizer-1.gitbook.io/stabilizer-docs/general-information/fees
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United we stand with Stabilizer in building the future.
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Thanks you team, it’s really interestinf!
stablizer will have its own token
Nice to be here
Keeping building
Finally here, looking forward to enjoying every bit of this forum with every stabilizer believer.
Really happy to be here, happy building
@JimmyOgb12 Yes, let’s contribute to stabilizing. 
Awesome and well noted
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