What Is Saber?
Saber is an automated market maker (AMM) built on the Solana blockchain. It specializes in trades between pegged assets like stablecoins, staking derivatives, or bridged assets. Saber aims to connect the world’s assets by providing a networked liquidity foundation.
Background
Saber was launched on Solana’s Mainnet Beta network in June and has grown significantly. It has over $5M+ in liquidity across pools and is the first to launch several trading pools on Solana. It offers a governance token, SBR, that allows holders to participate in directing the protocol’s development and aligns the interests of stakeholders.
How It Works
Saber enables efficient trading between similarly priced (pegged) assets with low fees and low-risk staking opportunities. It focuses on assets that revert in price, including USD stablecoins, bridged assets, and staking derivatives. Saber’s StableSwap algorithm assumes that assets in a pair will converge to the same price, thus reducing impermanent loss. Liquidity providers can profit from higher fees due to virtually zero change in price from trades. Saber’s LP tokens can be used in various places, reducing the opportunity cost of deploying capital and providing a passive rate of return to the decentralized financial ecosystem.
Key Takeaways
- Saber is an automated market maker (AMM) built on the Solana blockchain, specializing in trades between pegged assets.
- Since its launch on Solana’s Mainnet Beta network in June, Saber has grown significantly, with over $5M+ in liquidity across pools.
- Saber offers a governance token, SBR, which allows holders to participate in the protocol’s development.
- Saber uses a StableSwap algorithm that assumes assets in a pair will converge to the same price, reducing impermanent loss.
- Saber’s LP tokens can be used in various places, providing a passive rate of return to the decentralized financial ecosystem.
