According to a recent LinkedIn post from Stable, new simulation-backed research on YieldBasis presented at Stable Summit IV suggests that the commonly used 50/50 fee split between LP rewards and pool rebalancing in concentrated liquidity AMMs may be suboptimal. The post indicates that altering this fee ratio could enable pools to track reference prices more closely while improving overall balance.
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The LinkedIn post notes that such adjustments might reduce pool imbalances from levels as skewed as 80/20 to around 65/35, potentially creating smoother withdrawable value profiles for liquidity providers. A quoted remark from researcher Michael Egorov characterizes the effect as allowing the algorithm to be more profitable and more balanced simultaneously.
The post further highlights that the same mechanism is relevant for Curve Finance’s FX pools that support non‑dollar stablecoins. This linkage could be significant if tokenized foreign exchange volumes grow, as improved stability and capital efficiency in these pools may influence trading spreads, protocol fee capture, and user adoption.
For investors monitoring Stable’s ecosystem and the broader DeFi infrastructure space, the research outlined in the post points to a possible avenue for optimizing automated market makers’ economics. If widely implemented, such fee-structure refinements could enhance the attractiveness of liquidity provision, support deeper liquidity, and potentially strengthen Stable’s positioning in the competition for institutional and retail on-chain capital.