This has resulted in a higher demand for pegged cryptocurrency. To be clear, pegged crypto assets refer to digital currencies whose value is linked to another asset. These asset-backed crypto currencies can be redeemed in a 1:1 ratio to their underlying assets.
Pegged-value crypto assets offer many advantages, but traders and investors still face high spillage issues when trying to trade between these assets. This can lead to lost market leverage.
Slippage refers to the difference in the order’s expected price and the actual price at which it will be executed. Slippages in crypto happen for two major reasons – liquidity and volatility. When trading crypto assets with a fixed value, liquidity can often be the reason for slippage.
Saddle Finance is designed to minimize slippage and allow efficient swapping these asset-backed cryptocurrency.
What is saddle finance?
Saddle Finance, a decentralized automated marketmaker (AMM), is built on Ethereum blockchain. It allows you to trade crypto assets whose values are tied to an asset or a group of assets. Saddle allows traders and liquidity providers to trade cheaply, quickly, efficiently, and with low slippage.
This project was developed by DeFi natives who have worked with top Web2 companies like Amazon and Uber.
Saddle’s team of developers are knowledgeable in the field of decentralized finance and are determined to provide mainstream users with a platform that caters to their specific needs while offering several financial benefits.
Saddle Finance uses the StableSwap method to quickly transfer pegged-value crypto assets with minimal slippage.
Saddle Finance Features
Security is of paramount importance in crypto industry, especially when it comes to DeFi protocols that are run on smart contacts such as Saddle. Saddle takes Smart Contract Security very seriously. They conduct their own internal security audit of the smart contract code they’ve written. As a further check, to make sure Saddle’s code is proper and working as intended, they reportedly hire reputed external agencies to audit their smart contract codes.
Smart contracts can be highly innovative but they are also susceptible to bugs, flaws and other inefficiencies. These flaws can lead to vulnerabilities that could compromise the protocol. Hence, Saddle ensures that its smart contract codes are working as intended by employing the services of three reputable auditing firms – CertiK, OpenZepplin, and Quantstamp.
These three auditors are experts in cybersecurity and have access to the latest tools and technologies in the blockchain security industry. These auditors have certified Saddle.
Additionally, the project organizes bug bounty programmes that encourage crypto communities to help it find bugs and vulnerabilities in its protocol.
Different Yield Farming Tools
Yield farming is a way for traders to make passive income from their digital assets. Most users are not familiar with DeFi and don’t know how to farm yield.
Saddle offers a variety of tools to help users learn more about yield farming. These tools were created to meet the needs of traders at all levels of experience.
Traders have the option to deposit crypto assets into Saddle Pools and become liquidity providers. These LPs will be incentivised to contribute to the pool by the platform.
The Saddle ecosystem offers LPs trading fees, interest from loans, and other incentives.
The Saddle Token
Saddle Finance’s native cryptocurrency is SDL. The maximum amount of SDL tokens available is 1 billion. They are issued at genesis and will be released over 3 years.
51% will be given to the Saddle Community for liquidity mining and community incentive programs. Governance treasury is also included. 25.9% of the SDL tokens will go to the project’s team, 22.5% to investors, and the remaining 0.6% will go to advisors.
SDL can be used for transaction fees or to incentivize liquidity providers. It is also the Saddles governance token and allows holders to vote for decisions that affect the whole ecosystem.
Users can earn SDL by either providing liquidity or by participating in the platform’s hackathon and grants program, bounties4bandits (b4b).