> For the complete documentation index, see [llms.txt](https://docs.communityfinance.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.communityfinance.io/limitations-on-current-stable-swap-protocols.md).

# Limitations on Current Stable-Swap Protocols

Many current DEXs with Automated Market Makers (AMM) are facing a variety of issues that diminish the efficiency of their protocol. 

The invariant curves mechanism and deficiency of multi-assets integration have led to higher slippage, lower scalability, capital inefficiency, and poor user experience in existing protocols. 

Compared to the traditional financial markets, DeFi provides an alternative solution to keep up with modern demand. But without a more transparent, relatively stable, and more efficient protocol, the system has yet to live up to expectations.