Intelligent Peg Adapters
Last updated
Last updated
Intelligent Peg Adapters (IPAs) are specialized smart contracts designed to maintain the stability of the peg. Each IPA serves as a dedicated adapter to seamlessly communicate with the corresponding approved by Governance.
The pre-allocates a supply of by minting them directly to the IPA. When quote token liquidity is provided by liquidity providers, the IPA combines it with its available to deposit both tokens into the at a one-to-one ratio. This ensures the pool remains balanced and supports efficient trading between the tokens.
The IPA employs a combined mechanism to maintain peg stability during price deviations from the target range:
If sufficient liquidity is available in the contract, it can perform token swaps to adjust the peg. This mechanism directly impacts the token reserve amounts in the pool, bringing the peg back to the target range.
The first IPA that the Enjoyoors protocol will support is the Curve Pool IPA.
When deposit/withdraw functionality is not paused, the IPA can facilitate the provision or withdrawal of . This mechanism increases or decreases the reserve amount of , helping to stabilize the peg.
In addition to the IPA's stabilization mechanisms, authorized liquidity providers and actively monitor the peg. These entities use the IPA to dynamically rebalance the peg. Their involvement provides an additional layer of stability, ensuring the peg is maintained even during volatile market conditions.
