Saber is an automated market maker for trading assets on Solana. It’s also a leading cross-chain stable coin exchange on Solana, providing the liquidity foundation for stable coins, or a cryptocurrency whose value is pegged to another asset. Market makers deposit crypto into a Saber liquidity pool to earn passive yield from transaction fees, token-based incentives, and eventually automated DeFi strategies.
Many DEXs often use the Order-book mechanism, whereas Saber uses the AMM mechanism. This is a mechanism that liquidity providers will place their liquidity into a pool, allowing traders to swap assets. Using the AMM mechanism helps Saber solve the liquidity shortage that often occurs with DEX Orderbooks.
What makes a Saber difference?
- Anti-slip mechanism
If you have ever wondered why an AMM DEX, specifically for Stablecoins, is required, then the photo below will answer that question. It allows investors to compare between the two AMM exchanges, Raydium and Saber.
- Saber: 1000 USDC ⇒ 998 USDT.
- Raydium: 1000 USDC ⇒ 992 USDT.
Clearly, there is a significant difference despite these two types of assets having the same value:
- Saber has a slippage of just 0.2%.
- Raydium has a slippage of 0.8%.
Saber’s impact is significantly higher for any trade with a volume greater than $100,000. The slippage in Raydium can be as high as 1%.
In short, and for the time being, Saber prefers to concentrate on the stablecoin swap niche, without going into the hotly-contested general coin exchange market.
2. Liquidity Pool Staking
In addition to coin swaps, Saber also offers LP staking. Liquidity providers can earn yield by contributing their funds to a pool of their choice, on the platform. There are a total of 25 pools currently available.
Annual percentage yields from staking on Saber are high, even by the DeFi standards. However, these rates may fluctuate wildly over a short period of time, which is fairly usual for yields on crypto trading platforms.
DePocket is excited to integrate such a great dApp like Saber.
Saber is the 5th dApp DePocket has integrated on the Solana chain. This integration offers further benefits to the growing number of Apps already integrated into DePocket, making our platform incredibly stable and attractive to crypto investors.
The growing number of integrations into our App result in a better platform for our users, and serious investors. As our platform continues to grow and strengthen, users continue to enjoy the ease in which they can manage their assets across multiple chains and multiple wallets.
Try our demo wallet here: https://app.depocket.com/addresses/GVQzKmFPJDrJT1pBYiT7KhfhMqvmU6yQ6SAhQKR7roaj
While the market is experiencing a downward trend, for the time being, be sure to check the on-chain data news often, and be ready to make more informed and sensible decisions.
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