A stableswap is an automated market maker (AMM) optimized for similarly priced tokens and provides minimum slippage and efficient liquidity provision.
Constant product AMMs are useful for price discovery since moving on the curve in either direction will affect the price of each asset. However, this price curve makes it difficult to swap closely pegged assets, which should theoretically trade without affecting each other's price.
The constant sum pool (X + Y = K) has no slippage but can run out of liquidity when the pool is imbalanced on one side. The constant product pool (X*Y=K) has slippage but can always maintain liquidity since the price of an asset increases with the demand.
Stableswap combines the constant product and constant sum functions to achieve minimum slippage and provide a balanced pool. This function acts as a constant sum when the pool is balanced, providing low slippage trades, and shifts towards a constant product as the pool becomes more imbalanced to ensure the pool never runs out of liquidity.
Stableswap on Dexter will support liquid-staked assets, which are highly correlated with the underlying staked assets. Liquidity for these assets would boost their utility in DeFi.The stableswap will facilitate low slippage trades for assets like stkATOM and stATOM with base assets like ATOM. This will allow stakers to instantly redeem their staked assets by swapping their liquid-staked assets into the base asset.
Bridges like Axelar and Gravity are pouring massive amounts of stablecoin liquidity to Cosmos from Ethereum and other ecosystems. Moreover, with the rise of native stablecoins like IST and SILK, along with USDC coming up natively on a consumer chain with Interchain Security, stableswap would serve as a vital part of the Cosmos DeFi ecosystem.
By supporting these assets, Dexter aims to become the liquidity hub for yield-generating assets and stablecoins in the Cosmos ecosystem.

Stable - 3/5 Pools

Dexter will also support stableswap pools with more than two tokens, like Curve’s 3pool, which provides enormous liquidity for three top stablecoins in DeFi - USDT, USDC, and DAI. Stable 3/5 pools on Dexter would support 3 to 5 highly correlated assets.
The liquid-staking landscape in Cosmos is diverse, with multiple players like pSTAKE, Quicksilver, and Stride. Stable - 3/5 pools on Dexter would support liquid-staked assets from all these zones and facilitate low slippage trading between these assets.
For example - stkATOM/stATOM/qATOM