> For the complete documentation index, see [llms.txt](https://docs.ferroprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ferroprotocol.com/essentials/whitepaper/protocol-overview.md).

# Protocol Overview

Ferro Protocol features liquidity pools, with each pool featuring a pair of tokens. Liquidity providers can deposit tokens into the pool, whereas traders could swap between the tokens.

The protocol follows a **Hybrid Invariant Model**. This unique price curvature results in two benefits: 

1. Effective maintenance of peg 
2. More efficient trades at higher volumes