Stellar Community Fund

By Comet

Comet

SCF #13

$150.0K

Legacy v4.0 Award

Awarded

Comet is a weighted AMM protocol that offers soroban projects a flexible solution set when picking liquidity venues

Products & Services

Comet is a Soroban implementation of Balancer’s weighted automated market maker protocol. It utilizes an N-dimensional surface-based cost function to enable the creation of arbitrary weight, arbitrary asset count, AMM pools. So instead of being limited to the standard 50/50 seen in classic XYK AMM pools, users could deploy 2-asset pools with asset weights of 80/20 or even 4-asset pools with weights of 10/15/15/60. This increased flexibility allows AMMs to serve a much wider array of use cases for users and projects. These capabilities, and their effect on ecosystem liquidity, make weighted AMMs a natural fit for the Stellar ecosystem.

Stellar has persistent issues maintaining liquidity. There are two main ways to address this. (1) you find more liquidity providers - weighted AMMs help here as they make passive token holders more likely to provide liquidity due to impermanent loss reduction. (2) you make liquidity provisioning more efficient – here, weighted AMMs help by enabling AMM pools with more than two assets, allowing asset pairs to share liquidity.

Comet’s codebase will serve as an important resource for the growth Stellar DeFi ecosystem. Balancer is the second most forked AMM protocol, with many forks expanding on the core technology. Providing a secure Soroban proof-of-concept implementation of the codebase will make it easier for new teams to enter the ecosystem and begin building. We will get the protocol audited and release a basic user interface for those uncomfortable interacting with the smart contracts directly on Testnet. This protocol will serve as a proof of concept and will not be deployed on Mainnet. Specifically, this proof of concept will be solely deployed to Testnet, and released as open-source software. As for plans after we develop a Testnet proof of concept, there are none. Comet is designed to be a public good. There will be no DAO or token, just an open-source protocol that any Soroban project can use as a building block.