# V2 Stable Pools Explained

Pools holding assets at the same price are called stable pools. Camelot <mark style="color:yellow;">**V2**</mark> stable pools are based on solidly maths. A [dual-liquidity](https://docs.camelot.exchange/protocol/amm/dual-liquidity-type) model is built directly into the Camelot core, which supports both stable pools with assets that are correlated with each other as well as volatile pools with uncorrelated assets.&#x20;

Stable pools concentrate most of their liquidity at current prices, so they use it more efficiently. As trades occur, the pool can adjust the price so as to move the highest liquidity region without incurring losses.

{% hint style="info" %}
The stable swaps tend to stick to the 1:1 ratio as much as possible until a certain point where they revert to a xyk curve when impossible. To move away from a 1:1 swap ratio, the liquidity ratio spread must be way more pronounced compared to a xyk curve
{% endhint %}

The process of becoming a liquidity provider in a stable pool is the same as that in a volatile pool. As a liquidity provider in a stable pool, you will gain exposure to all assets in the pool and will incur risk as well.&#x20;

{% hint style="warning" %}
Calculations are used to maintain the liquidity of the pool at all times using mathematical formulas
{% endhint %}

* <mark style="color:yellow;">x</mark> is the amount of the first asset in the pool
* <mark style="color:yellow;">y</mark> is the amount of the second asset in the pool
* <mark style="color:yellow;">k</mark> is a fixed value

<figure><img src="/files/a8jEcMvrZcG5uh722lZH" alt=""><figcaption></figcaption></figure>

An illustration of how the stable <mark style="color:purple;">purple</mark> and volatile <mark style="color:orange;">orange</mark> AMM pricing calculations compare is presented below. It shows:

{% embed url="<https://www.desmos.com/calculator/x3wlqk4iy5>" %}


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