In SaucerSwap V1, yield farming involves staking liquidity tokens in the Masterchef smart contract. Rewards are distributed pro-rata in the form of SAUCE and HBAR tokens, based on the amount of liquidity you’ve provided. Unlike the SaucerSwap V1 yield farm, which only supports SAUCE and HBAR rewards, LARI can be configured to emit any number of HTS tokens for each pool. This enables projects to tailor campaigns for their liquidity pools, rewarding LPs with their protocol token. In SaucerSwap V2, each liquidity position is uniquely represented by a non-fungible token (NFT). This is because LPs can specify arbitrary price ranges for their liquidity, resulting in positions that are distinct and non-fungible.
What is an AMM?
In fractional fee tokens, the fee is deducted from the transaction amount, such as during a swap. A workaround for fixed fees in SaucerSwap V1 is to set a fractional fee at 0% and use a fallback. For detailed guidance on implementing custom https://cryptolisting.org/ fees in the Hedera Token Service (HTS), refer to the Hedera Docs. SAUCE may be available to users wishing to participate in governance, liquidity provision, or staking. Known exchanges that have listed SAUCE can be found on CoinMarketCap.
How to Swap Tokens: Instructional Video
Following a successful public beta on the testnet, SaucerSwap V2 launched in November 2023. The SaucerSwap protocol is a peer-to-peer system designed for exchanging cryptocurrencies, specifically HBAR and HTS tokens. It prioritizes censorship resistance, security, and self-custody, and functions without the need for trusted intermediaries who may selectively restrict access. USDC is a fiat-backed stablecoin, pegged to the U.S. dollar, and issued natively on the Hedera network as an HTS token. On the other hand, USDC[hts] originates on the Ethereum blockchain, where it is also issued by Circle, and is then bridged to the Hedera network via Hashport.
Initial Supply
You can find this address either within the SaucerSwap interface or on HashScan. Once imported, your tokens should be visible in your MetaMask wallet. The trading volume of SaucerSwap (SAUCE) is $736,355 in the last 24 hours, representing a 1,017.70% increase from one day ago and signalling a recent rise in market activity. The entire 43.75% DAO allocation of Masterchef emissions (55.49 SAUCE / min) will go towards LARI for the first four epochs. For subsequent epochs, half the allocation will go towards LARI, while the other half is retained by the DAO for future use. The 7-day average Fees APRFees \space APRFees APR is displayed in the SaucerSwap interface.
How do I claim my liquidity provider fees in V1?
Hedera’s architecture ensures fair transaction ordering on SaucerSwap. This nullifies the possibility of MEV attacks seen in Ethereum-based protocols like Uniswap. Alice and Bob both decide to provide liquidity to the USDC/USDT pool bank accounts that let you draw in opposition to uncleared cheques on SaucerSwap V2. This pool has a 0.05% fee and a tick spacing of 10, where every tick represents a 0.01% change in price. Additionally, this pool is allocated a total of 100,000 SAUCE in LARI rewards for the current epoch.
- 14% of the max supply (140 million SAUCE) was distributed to community members holding Planck Epoch Collectible (PEC) NFTs based on the type and number of NFTs in their account.
- Bob’s decision to provide liquidity in a narrow, focused range where he anticipated price activity led him to outperform Alice in terms of rewards by a factor of 100.
- The SaucerSwap interface offers volatility strategies with preset price ranges tailored for each fee tier to cater to different LP styles, streamlining liquidity provision.
- Market cap is measured by multiplying token price with the circulating supply of SAUCE tokens (670 Million tokens are tradable on the market today).
With V2, an LP can concentrate their capital within a tight range, say, 0.995 to 1.005 USDC/USDT, which can result in a more efficient utilization of their capital and higher fee earnings. For V1, it is a fixed 0.30%, while V2 offers variable rates of 0.05%, 0.15%, 0.30%, or 1.00%. Out of the collected fee, 5/6 goes to liquidity providers, and the remaining 1/6 is allocated to the protocol. This protocol share is used for SAUCE token buybacks, which are then distributed between the Infinity Pool and the DAO. SaucerSwap leverages the Hedera Token Service (HTS) for its rapid throughput and low-cost, U.S. dollar-denominated fee structure.
In each swap, traders are charged a fee based on the pool’s fee tier. As with SaucerSwap V1, 5/6 of the collected fee is allocated to LPs, and the remaining 1/6 is directed to the protocol. The protocol’s share is used for SAUCE token buybacks, which are then distributed between the Infinity Pool and the DAO.
You can obtain HBAR by swapping for it on the SaucerSwap protocol, purchasing it from centralized exchanges, using fiat-to-crypto gateways, or through the SaucerSwap Discord faucet. Note that, on August 8, 2023, the SaucerSwap DAO approved the Tokenomics V2 Proposal. This section will provide details about the updated tokenomics. For historical reference, you can access the archived Old Tokenomics documentation. At genesis, the DAO deployed a set of non-upgradeable vesting contracts where 300 million SAUCE was locked. Over a span of 3 years starting from genesis, these tokens undergo a linear vesting process.
This system addresses certain limitations of the SaucerSwap V1 yield farm. Notably, the obligatory staking of LP tokens, which transfers LP custody, is not optimal. Moreover, it is inefficient to reward LPs without accounting for their relative performance. Every reward token, such as SAUCE or HBAR, should not only incentivize liquidity, but also ensure its optimal use, with rewards reflecting this objective. The volatility strategies aim to simplify the process of liquidity provision but do not guarantee enhanced performance or reduced risk of impermanent loss.
Unlike in V1, where liquidity is uniformly distributed across all possible prices (0, ∞), V2 enables more efficient use of capital. SaucerSwap integrates with the Hedera Token Service (HTS), achieved by modifying Uniswap smart contracts to interact with the Hedera Smart Contract Service (HSCS) through EVM precompiles. This allows for rapid throughput, fast transaction times, and a low-cost, U.S. dollar-denominated fee structure. Hedera’s architecture also ensures fair transaction ordering on SaucerSwap, which nullifies the possibility of MEV attacks seen in Ethereum-based protocols like Uniswap. At the end of each epoch, rewards are automatically sent to the participants via an airdrop.
Bob’s focused approach results in a reward of 99,010 SAUCE, while Alice’s broader approach yields her only 990 SAUCE. Bob’s decision to provide liquidity in a narrow, focused range where he anticipated price activity led him to outperform Alice in terms of rewards by a factor of 100. Alice, although safer in terms of exposure to price movement, did not capitalize as efficiently on the rewards during this particular epoch. A more conventional implementation of limit orders is on the roadmap. Concentrated liquidity thus offers LPs the potential for higher real yields through increased capital efficiency, while also providing users with better trading conditions like lower slippage.
Before the epoch begins, each pool is assigned a weight of token rewards. For example, the USDC/HBAR pool may receive 15% of the total SAUCE rewards over this 14-day period. SaucerSwap V2 is an automated market maker (AMM) based on Uniswap V3 smart contracts, adapted to work with the Hedera Token Service (HTS) through the Hedera Smart Contract Service (HSCS). SaucerSwap V1 supports tokens with fractional fees but not those with fixed fees.
It is strongly advised that liquidity providers actively manage their positions. Please be aware that the current preset ranges may be adjusted based on community feedback. Finally, using these volatility strategies is entirely optional, and LPs always have the choice to define a custom range.
Hedera’s architecture ensures fair transaction ordering on SaucerSwap, which nullifies the possibility of MEV attacks seen in Ethereum-based protocols like Uniswap. Other unique features include LARI, a yield-bearing HBAR wrapper, and single-sided staking. In SaucerSwap V2, the Liquidity-Aligned Reward Initiative, or LARI, is a system that streamlines token incentives for efficient liquidity provision. Rewards are automatically distributed every two weeks and can be configured in various tokens and amounts, offering flexibility for different campaigns.
Each tick signifies a 0.01% change in the price, and LPs must select upper and lower ticks to define their position’s boundaries. As swaps occur and the spot price (i.e., active tick) changes, liquidity will be activated or deactivated according to these ticks. Liquidity providers are compensated primarily through trading fees generated from swaps that occur in the liquidity pool they contribute to. In addition, SaucerSwap V1 and V2 offer additional incentives through the Yield Farm and LARI, where LPs earn tokens as rewards for providing liquidity. SaucerSwap is unique in its integration with the Hedera Token Service (HTS), providing rapid throughput and a low-cost, U.S. dollar-denominated fee structure.
