Paradigm Proposes Stablecoin-Focused AMM for DEX

The AMM developed by Paradigm, named Orbitals, enables large liquidity pools to adjust their risk exposure for a “significant improvement” in capital efficiency.

According to experts, this outcome was achieved by taking concentrated liquidity to “other dimensions.”

Unlike existing decentralized trading solutions such as Uniswap V3 with two assets, and Curve, which supports multi-token pools but limits LP participation, Orbitals allows pools to optimize their risk exposure to enhance capital efficiency.

The solution is suitable for pools of multiple “stablecoins” — from two to three “or 10,000.”

“Today, Orbital is just a project, but we’re excited to see how it might change the stablecoin liquidity landscape,” wrote one of the protocol’s creators, Dave White.

Today, Orbital is just a design, but we’re excited to see how it might change the stablecoin liquidity landscape.

If you’re interested in exploring with us, we’d love to hear from you.

You can find the paper at https://t.co/rxsFn0SH56

8/8

— Dave White (@_Dave__White_) June 2, 2025

In early June, the capitalization of “stablecoins” surpassed $250 billion for the first time.

Standard Chartered predicted growth to $2 trillion by 2028, with the US Treasury reporting similar expectations. Citi anticipates growth to $3.7 trillion in five years.

On May 22, WSJ reported that companies co-owned by JPMorgan, Bank of America, CitiGroup, Wells Fargo, and other major banks are discussing the launch of a joint “stablecoin.”

Earlier, the digital asset markets working group formed by US President Donald Trump in January identified the development of a regulatory framework for stablecoins as a priority.