Saber

Market Making

Saber is a decentralized exchange that enables permissionless trading of pegged assets on Solana.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Saber is the leading cross-chain stableswap and yield farming protocol that enables more efficient trades between similarly priced assets.
What we like less
The protocol is exposed to more composability risks as it leverages bridging architecture from Portal (Wormhole) to enable cross-chain swaps.
What it means for you
Saber offers a great way for you to earn yield through market making on stablecoins and tokenized assets with low fees on Solana.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: SBR
  • Tags: Market Making
Key Metrics
  • TVL: $19.7M (Rank #125)
  • TVL Ranking by Market Making: #0
  • Blockchain: Solana
  • Chain TVL
    • Solana: $19.75M
Risk Assessment
Average
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Timelock is less than 48hrs, which provides users with less time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about Saber

How Saber works

Saber is a decentralized exchange that is an unauthorized fork of Curve on Solana. Saber leverages the stableswap AMM algorithm which is a combination of the constant product (popularized by Uniswap) and constant sum formula. Trading occurs on a constant sum curve when the pool is relatively balanced and switches to a constant product curve when imbalanced. This allows for lower slippage and impermanent loss but is only applicable to similarly priced assets like stablecoins. The protocol charges a fee on every trade within a pool.

How Saber makes money

Saber makes money through protocol fees that are currently set at less than 1% for swaps.

How you make money on Saber

You earn swap fees for providing liquidity on Saber. Each pool also provides incentives in the form of native protocol tokens and the SBR token, which is used for governance purposes. Currently, there is not mechanism to accrue value back to SBR holders.