Summary of common questions for Smoothy

6 min readMar 12, 2021

Basic Introduction

What is Smoothy?

Smoothy is a novel stablecoin swapping protocol that is capable of supporting 20+ stable coins in a single pool with low-cost low-slippage swapping and maximum interest earning for LPs.

Can Smoothy achieve 1:1 ratio swap between stable coins?

Smoothy develops an algorithm that can guarantee 1:1 ratio swap most of the time if the percentage of the token in the pool is lower than soft weights; if not, a swap is still allowed by imposing a penalty fee as slippage.

What is syUSD? The current price is 1.6, will it drop back to 1.0?

syUSD is an LP token, not peg to USD in 1:1. It is accumulated with swap fee + interest + penalty fee. syUSD will keep rising unless the interest-bearing token (yToken) returns a negative interest.

How to ensure the security of a single pool with all assets, that is to say, how to prevent risk of draining out all other assets if one asset gets attacked?

1. The current 8 stablecoins supported by Smoothy are carefully selected based on the record of safety level and trading volume. Even so, we have restrictions of the maximum proportion of the pool (redline in the basket) for each of them, ranging from 10% to 100%. Newly added stablecoins will have even more strict hard limits. The risk will be strictly controlled.

2. The yellow line in the basket represents the soft range for 1:1 swapping. There will be a slippage (according to the price of the token at this time) out of soft weight. So even if the price of a stablecoin suddenly dropped after an attack, the allowed range of 1:1 swap is also very limited, especially for newly added assets.

3. In addition to the current 8 stablecoins, the newly added stablecoins need SMTY as collateral even after voting. Once the token is at risk, users suffering from loss will be compensated using their collateral.

What is the total supply of Smoothy and what is the token economics?

The details will be released before public sale after initial mining events.

Initial Liquidity Mining

How to provide liquidity in Smoothy?

Just deposit any 8 stablecoin that Smoothy supports and get syUSD in your balance. Simple and easy. Read more details https://smoothy-finance.medium.com/smoothy-finance-mining-tutorial-725296969447

Will the LP reward of different stablecoins be different? How to maximize return?

There is only one single pool for all stablecoins, so the APY is the same no matter which stablecoin you deposit. However, we would recommend you to deposit stablecoins with less liquidity to help Smoothy grow more healthy.

How many rewards can I get as an LP in the initial mining event? What is APY, and where can I find it?

LP reward= Swap fee + slippage fee + interest (from YFI) + SMTY ( will be distributed later after public sale). The first 3 incomes will be reflected in the price of syUSD.

90% of funds in the pool will be deposited into YFI to generate interest next week with about 10%~20% APY. Please refer to YFI official website for the real-time rate.

You can do a rough calculation of APY based on syUSD price change for now. There will be accurate APY live on the website soon.

I am providing liquidity on Smoothy, why I haven’t received any SMTY? There is only one syUSD.

The initial mining event will last for 21 days without SMTY available at this moment. LP will receive the SMTY later after the public sale. That’s why you have not received any SMTY so far as LP. Once there is syUSD in your balance, that means you are providing liquidity and will receive LP reward later.

Is there a lock-up time for LP? Can I redeem syUSD back to stablecoin anytime?

There is no lock up time, and you can withdraw liquidity anytime.

How many days will initial mining last?

Initial mining aka “pre-mining” for ETH and BSC will both be active until April, 20th 2021.

Airdrop and Public Sale

What are the specific rules for airdrop and how can I get an airdrop?

Airdrops and LP reward of initial mining are separate. There are no details for airdrops by now. However, the more you interact with the product, the higher chance to get an airdrop.

Is there a whitelist for public sale? How to get into the whitelist?

There are 2 types of public sale:

1) Fixed price: BSCPad, Ignition by Paid, and DAO Pad ($0.5, $50M valuation). There will be different whitelisting rules with cap for each platform, refer to their websites and Twitter for details.

2) Multi-priced crowd pooling: Paddle.finance ($0.5+, $50M+ valuation). No whitelisting, no platform token holding requirement, no cap, open to everyone. For more information on Paddle, please visit:

Website: https://paddle.finance/
Twitter: https://twitter.com/PaddleFinance

Auditing and Product Use

Finish auditing?

Auditing was conducted by Peckshield. Meanwhile, we are inviting more auditing firms to conduct more auditing to ensure the security of the project.

https://smoothy.finance/PeckShield-Audit-SmoothyV1-v1.0rc.pdf

I have a large amount of a single stablecoin. Is your design not friendly for large deposits?

If you have a large amount of single stablecoin, you should pay attention to the range of zero slippage that is allowed. For example, the max deposit amount for USDT is ~4m and ~15m for USDC right now based on the current TVL. The number will increase if TVL becomes bigger. If you have large funds in multiple assets, you do not need to worry about slippage by clicking the ‘multi-deposit without price impact’ feature.

Does the withdrawal have anything to do with the yellow line?

It matters. For example, there is very little DAI in the pool currently, so there will be slippage if you want to withdraw DAI only. A pop-up screen will remind you of the slippage in this situation. Also, we provide a “multi-withdraw without price impact” function, it will automatically calculate the ratio with no slippage for you.

How do I know the safe amount for deposit and withdrawal?

The safe amount of each stablecoin that can be deposited/redeemed will be calculated automatically by clicking ‘Multi-deposit/withdrawal without price impact’. The safe amount of each stablecoin that can be deposited/redeemed will be calculated automatically by clicking ‘Multi-deposit/withdrawal without price impact’.

How can I withdraw 100% of my funds when using ‘Multi-Withdraw Without Price Impact’ feature?

Click ‘Multi-Withdraw Without Price Impact’ button
Click the check boxes for ALL stablecoins
Randomly select the ‘MAX Without Price Impact’ button on multiple stablecoins to make different combinations until you reach your syUSD balance.

*Note* Sometimes browser cache will affect this feature. Make sure to clean your cache prior to use.

Why does a transaction ask for 1 ETH as GAS?

Generally, this situation occurs when using the ‘multi-deposit/withdrawal without price impact’ function. If the interval time between calculation and transaction confirmation is too long, the transaction might fail due to the proportion change of the pool. Please refresh the page and recalculate the rate again.

What is the fee for swapping? Are there any fees for withdrawing?

In addition to the GAS fee charged by Ethereum which is much lower than Curve, the token swapping is 1:1 within the yellow line with a 0.04% transaction fee. A 0.04% fee will be charged for withdrawal liquidity.