SaucerSwap is a decentralized exchange that goes beyond the ERC20 standard by leveraging HSCS and HTS, inheriting the full advantage of the Hedera network. The protocol is based on the Uniswap v2 constant-product formula, but employs Hedera’s native token service (HTS), representing the novelty of SaucerSwap.
SaucerSwap currently offers a suite of DeFi services including a token swap, liquidity pools, and yield farms. Soon to come will be single-sided staking, community pools, frontend bridge integration, novel staking mechanisms, and more.
As of writing, SaucerSwap has over $15M in TVL, and has not involved VC funding to date. Additionally, in less than one month after their public launch, the trade volume exceeds $25M, amounting to over 100,000 swaps.
The HBAR Foundation announced a partnership with SaucerSwap in July 2022, just before SaucerSwap went live. This partnership results in more yield farming incentives through HBAR rewards in order to get more Hedera users involved in the world of DeFi.
SaucerSwap acknowledged the lack of a DEX on Hedera, and saw opportunities in three facets of the network: (i) HSCS interacts with HTS in such a way that tokens are not contracts (ERC20 standard), but are instead created by and controlled through HTS so that the network’s consistent and predictable fee structures can be taken full advantage of; (ii) the network does not have a mempool, which renders frontrunning – a huge problem on blockchains – nonexistent on Hedera; and (iii) HCS (the Hedera Consensus Service) allows for DAO-based governance frameworks in which users can create ballots and cast votes in a decentralized, immutable, and transparent manner.
Overall, SaucerSwap has a strong community focus, which has resulted in high usage and the potential for massive growth.
SaucerSwap will ultimately be a one-stop-shop for Hedera DeFi, allowing users to do anything from bridging assets between chains to borrowing against deposited collateral. This will take the form of an all-encompassing DeFi web app where funds are easy to manage and the experience is seamless.
SaucerSwap has spoken about post-emission tokenomics during their AMAs. They will shift away from an inflationary model and instead focus on capturing real yield, as this will be sustainable long-term while also enhancing liquidity provider incentives. One way in which this will be achieved is by introducing the concept of concentrated liquidity. Similar to Uniswap v3, LP providers will gain the option to concentrate capital in the price range they believe will generate the highest return. This makes swapping less frictionless while also supplementing the lack of liquidity mining incentives. The end goal of concentrated liquidity is to increase capital efficiency for both traders and liquidity providers.
Despite SaucerSwap’s full-suite of offerings, they will first and foremost prioritize development of the DEX. Moreover, all integrations and feature implementations will improve the trading experience in a way that is only possible on Hedera. Overall, they strive to be the most liquid market in Hedera’s growing token economy.
To learn more visit saucerswap.finance