Numéraire
Contract: NUMERUNsFCP3kuNmWZuXtm1AaQCPj9uw6Guv2Ekoi5P
Last updated
Contract: NUMERUNsFCP3kuNmWZuXtm1AaQCPj9uw6Guv2Ekoi5P
Last updated
Numéraire is Perena's stableswap AMM. It facilitates the launch, trading and liquidity provisionining of stablecoins by implementing composable, extensible pools and reducing idle-liquidity that exists in traditional AMM designs.
We have a flexible architecture to anticipate and adapt to emerging stablecoin standards. Numéraire is the first stableswap to natively integrate Solana Interest Bearing Tokens (IBTs), empowering innovation and growth for the Solana stablecoin ecosystem.
This composable structure isolates risks and optimizes swaps by connecting established stablecoins with emerging ones. It consists in the combination of a Seed Pool that extends its liquidity to multiple Growth Pools.
The Seed Pool serves as the core liquidity hub, consisting of trusted and widely DeFi-integrated stablecoins such as USDC, USDT, and PYUSD. USD Star (symbol USD*) is the LP token representing ownership of the Seed Pool, continually appreciating in value as the Seed Pool accrues swap fees and auto-compounds its yield.
Growth Pools extend the protocol's functionality, composed by USD*, the "hub asset", and individual partner stablecoins, the "spoke assets". Swaps route through USD* in two hops: first into USD*, then out of it. This mechanism protects the Seed Pool from risks of stablecoins outside it and maximizes entire TVL utilization of Numéraire - minter of USD* capture both the seed pool and then can deposit it into growth pools for additional yield.
Bounded liquidity minimizes asset idleness, which results in better exchange rates and boosted swap revenue. It's particularly important for stablecoin pools since most trading occurs very close to the peg.
Essentially, this implementation concentrates liquidity in a narrow range — at on-peg pricing (0.99-1.01) — rather than spreading it across a wider price spectrum. When prices reach the bounds of the liquidity range, the pool only supports trading in one direction until prices return to the bounded range.
Perena's pools implement configurable asset weights to maintain optimal stability and trading efficiency across the protocol. This market-driven approach creates a self-reinforcing mechanism that maintains stability without external management by automatically adjusting swap prices based on token proportions.
Technically, the invariant equation establishes an anchor point that distributes liquidity according to target weights. When token proportions deviate from these targets, the equation automatically creates arbitrage opportunities by offering premium swap rates that drive liquidity back toward equilibrium.
For instance, the Seed Pool might target 40% USDC, 40% USDT, and 20% PYUSD. If USDC falls below its 40% target, the invariant equation produces more favorable rates for trades adding USDC, incentivizing arbitrageurs to restore balance.
Growth Pools extend this weighting mechanism with a simplified 50/50 weight between USD* (the Seed Pool LP token) and their partner stablecoins. This balanced weighting ensures efficient exchange between emerging stablecoins and the established stablecoins in the Seed Pool, while the hub-and-spoke model isolating risks.
Through this market-driven approach, the protocol maintains optimal capital efficiency and stability across both pool types without requiring active management.
