What is Saddle?

We’ve moved to blog.saddle.finance!

A rundown of the Saddle AMM and its solution for trading pegged value crypto assets.

Pegged value crypto assets are tokens that have their value pegged to an underlying asset by some means. For example, the value of a stablecoin or tokenized bitcoin is supposed to be $1 or 1 BTC, respectively.

Different subtypes of pegged value crypto assets (i.e. USDT and USDC, or wBTC and renBTC) are better suited for specific on-chain actions, or may be supported only by specific applications. Trading in between those assets, therefore, should be as simple as exchanging 1–1. In other words, there should exist little to no arbitrage opportunity when trading between one stablecoin and another; users should be able to retrieve 1 USDT for 1 USDC — or as close to that as feasible.

The issue with the pegged value asset market today is that the desired 1–1 trading isn’t easily accessible. Trading among and in between these types of assets can be expensive and inefficient, resulting in lost capital and therefore lost market leverage.

DeFi protocols are still iterating on how to properly incentivize and retain liquidity providers (LPs). One common approach has been to add a fixed percentage fee to withdrawals (e.g. Yearn Vaults). However, this mechanism doesn’t reward long-term liquidity providers. Saddle fixes this by implementing a configurable withdrawal fee that linearly decays to 0 over one month. This fee will be disabled at launch until further notice. We are presently working on several other ways to incentivize LPs, stay tuned!

Saddle是一个自动做市商（AMM），旨在实现固定价值加密资产之间的高效交易。Saddle上线的同时也推出了代币化比特币矿池，使其用户能在renBTC、WBTC、sBTC、和renBTC之间进行交易并提供流动性。

固定价值加密资产是指透过某种方式，将其价值与一基础资产挂钩的代币。以稳定币或代币化比特币为例，这些货币的价值永远都是1美元或1比特币。

固定价值加密资产可再细分为不同类型（也就是USDT和USDC，或是wBTC和renBTC），而有些是适合用于特定的链上操作，或者只受特定应用程式支持。因此，在这些资产之间进行交易应该如同一比一交易一样简单。换句话说，在不同稳定币之间进行交易时，应该几乎没有套利的机会。用户应能够以1 USDT兑换1 USDC — 或是以尽可能最接近的价格兑换。

当今固定价值加密资产市场的问题是，万众期许的一比一交易并不容易达到。在此类资产间进行交易可能成本高昂且效率低下，最后导致资本损失，进而失去市场优势。

比特币为一等公民

Virtual Synth功能支持

奖励机制留住LP

DeFi众多协议仍在不停探讨如何适当的激励及留住流动性提供者（LPs）。其中一种常见的机制是取款时收取的固定百分比费用（例如Yearn Vaults）。但是这种机制无法奖励长期的流动性提供者。为解决此问题，Saddle重新配置了取款费用，使该费用在一个月内线性递减至0。在另行通知前，此费用将于上线后暂时取消。我们现正努力研商更多其他的方式来激励LP，敬请保持关注！

安全性

关注我们的最新消息！

Related posts:

What do you have to celebrate? That is the question that you can ask yourself every day waking up and during the day. If you don’t have a reason to create one. If you love the expectation, set a time…

Affirmations are one of those things that seem to elicit skepticism from most people who are introduced to them, myself included. And so, I’ve endeavored to investigate and try to understand why…

One area where there is a huge diversity gap is in cybersecurity. I can’t think of many more areas where you want diverse thinking to tackle the toughest challenges . . . and attacks. We can be sure…