Saber

What is Saber?

The Saber AMM, governed by the Saber DAO, is an automated market maker and liquidity pool protocol on Solana designed for extremely efficient trading between similarly priced (pegged) assets, without an opportunity cost. The AMM is designed to cater to stablecoin trading and liquidity provision needs.

Saber AMM is strategically positioned as a hub for low-risk staking amidst large transaction volumes. It actively promotes high trading volumes by offering competitive swap pricing, thereby incentivizing arbitrage bots to engage in trading activities. Furthermore, Saber AMM demonstrates remarkable composability with other decentralized finance (DeFi) applications on the Solana blockchain, effectively reducing the opportunity costs associated with low-yield investments.

• Zero Impermanent Loss: Saber's StableSwap algorithm operates under the assumption that assets within a pair will ultimately converge to the same price. Consequently, it mitigates impermanent loss in a manner distinct from constant product AMMs. It's worth noting, however, that there remains a risk of price divergence from equilibrium, particularly if one asset in the pool experiences a permanent price shift. Investors are advised to conduct thorough research into the underlying assets before making investment decisions.
• Concentrated Liquidity: Saber's algorithm recognizes the expected price consistency between assets, resulting in negligible price fluctuations during swaps. Consequently, liquidity providers on Saber have the opportunity to charge higher fees and increase profitability.

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Recent Video Interview

Main points of the interview:

• Saber raised $8 million from Social Capital and others, investing in company equity.
• Discusses risks to cryptocurrency, such as bear markets and macroeconomic factors.
• Solana, a fast blockchain, was chosen for its efficient transaction processing, compared to Ethereum.
• Saber provides high APYs through token rewards, with variations based on staking amounts and pool risks.

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Liquidity Flywheel

Saber's system uses two types of tokens, SBR and veSBR, to help protocols increase their liquidity. If a protocol has enough veSBR and starts with some liquidity, they can boost their own pool's attractiveness by voting on it. This leads to higher rewards and APY (Annual Percentage Yield), attracting more liquidity.

The idea is simple: more liquidity means more rewards, which in turn brings in even more liquidity. Start with liquidity and veSBR tokens, vote on your pool to increase APY, earn and lock rewards to gain more veSBR, attract more liquidity, and repeat. Extra ways to boost liquidity include swap fees and offering incentives for votes on a pool through platforms like Vota.fi.

Asset Types

Saber generally allows for trading between assets which means a revert in price. There are several assets that Saber specializes in:

• USD Stablecoins: Including dollar-backed stablecoins like USDC and Tether, as well as stablecoins backed by crypto assets such as - USDH or the algorithmic stablecoin UXD.
• SOL Staking derivatives: Such as Marinade SOL (mSOL), SolBlaze SOL (bSOL), and Jito Staked SOL (JitoSOL).
• EUR Stablecoins (TBA)
• Bridged assets (TBA)

Saber DAO Token

The Saber Governance Token (SBR) serves as the backbone of governance within the Saber protocol, granting holders the right to participate in key governance activities such as proposing, voting on, and implementing changes to the protocol. With locked SBR, or veSBR, stakeholders have the power to influence protocol upgrades, parameter adjustments, and strategic initiatives, thereby driving the evolution of Saber in alignment with the collective interests of its community.

Similar Projects Mdex (HECO),

Some similar projects to Saber are Orca, Raydium, ApeSwap, Balancer, Biswap, BurgerCities, Curve DAO, Mdex (HECO), PancakeSwap...

Project Development

The Saber DAO revival marks a significant milestone, with over 8 months elapsed since its inception. Under the Cleanup Phase, the initiative has achieved substantial progress, including a revamped dApp interface, a new domain, and comprehensive documentation. Three primary objectives guided this revival:

• Enhancing Solana's Reputation: By revitalizing Saber, the initiative aimed to counter past setbacks and showcase the potential of community coordination within the Solana ecosystem, thereby dispelling doubts among detractors.
• Improving SBR Community Experience: Addressing deficiencies in Saber's DeFi offerings, particularly in comparison to Curve.fi's model, was crucial. Efforts were focused on augmenting SBR utility by integrating missing elements like sbrUSD and vote market protocols.
• Community Empowerment: The initiative sought to empower the community to govern the Saber protocol through the DAO. While initial coordination was provided, the revival's success relied heavily on community engagement and contributions.

The Cleanup Phase focused on activating the community, updating the frontend, streamlining DAO and protocol operations, and establishing a foundation for effective decentralized governance. The collaborative efforts from individuals, teams, and organizations across the Solana and Ethereum communities have been instrumental. This collective endeavor underscores the power of decentralized community collaborations in driving meaningful advancements within the ecosystem. As the Cleanup Phase nears completion, the initiative stands on the brink of achieving its objectives, heralding a new chapter in the Saber saga.

Saber Price Analysis

As of November 25 2024 Saber has a marketcap of $6.2M. This is {{percentagefromath}} from its all time high of $0.960362. In terms of its tokenomics, there's a total supply of 3B with 74% currently outstanding. Keep in mind Saber has a fully diluted value of $8.4M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.