The crypto market is very volatile, which has led to increased demand for pegged cryptocurrencies. To clarify, pegged crypto assets are those digital currencies whose value is tied to another asset or basket of assets that normally fluctuate outside of the general crypto market to ensure stability. These asset-backed cryptocurrencies are redeemed 1:1 to their underlying assets.
But despite the benefits that crypto assets with tied value offer, investors and traders still face the problem of high dispersion when attempting to trade between these assets. This often results in lost market leverage.
Slippage is a term that describes the difference between the expected price of an order and the price at which it is filled. Slippages in crypto occur for two main reasons – liquidity and volatility. But liquidity is often the cause of slippage when trading crypto assets with tied value.
Saddle Finance intends to minimize the slippage issue and enable efficient exchanges of these asset-backed cryptocurrencies.
What is saddle financing
Saddle Finance is a decentralized automated market maker (AMM) built on the Ethereum blockchain for trading crypto assets whose value is pegged to another asset or basket of assets. Saddle enables traders to have cheap, fast, efficient, and non-slip swaps and high-yield pools for liquidity providers.
The project is being developed by a team of DeFi natives with development experience from working with some of the leading Web2 companies including Amazon and Uber.
Saddle’s development team is well-versed in the field of decentralized finance and committed to providing mainstream users with a platform that meets their specific needs while providing multiple financial benefits.
Saddle Finance integrates the StableSwap algorithm, which allows crypto assets with tied value to be transferred quickly and with minimal slippage.
Features of Saddle Finance
security
The importance of security in the crypto industry cannot be overstated, especially with DeFi protocols running on smart contacts like Saddle. Saddle takes smart contract security seriously. They conduct their own internal security review of the smart contract code they write. As a further check to ensure Saddle’s code is correct and working as intended, they reportedly hire reputable outside agencies to audit their smart contract codes.
Although smart contracts are very innovative, they are also prone to errors, bugs and other inefficiencies. These flaws create vulnerabilities that can compromise the entire protocol once exploited. Therefore, Saddle ensures its smart contract codes work as intended by enlisting the services of three reputable auditing firms – CertiK, OpenZepplin, and Quantstamp.
These three auditors are at the forefront of blockchain security and have the best tools and cutting-edge technologies alongside their cybersecurity expertise. Saddle is currently certified by these auditors.
The project also organizes bug bounty programs aimed at encouraging the crypto community to help them discover bugs and vulnerabilities in their protocol.
Various yield farming tools
Yield farming allows traders to leverage their digital assets and generate passive income. However, most users are new to the DeFi space and have little knowledge on how to farm yields.
Saddle makes a number of tools available to its users that provide information related to yield farming on the platform. These tools are designed to meet the needs of traders of all skill levels, from beginner to advanced.
Saddle Incentives
Traders can deposit their crypto assets into saddle pools and become liquidity providers. The platform incentivizes these LPs to contribute to the pools.
LPs receive rewards in the form of trading fees, lending rates, and other incentives specific to different liquidity pools in the Saddle ecosystem.
The Saddle Sign
SDL is Saddle Finance’s native cryptocurrency. It has a maximum supply of 1 billion SDL tokens minted at Genesis and made available over the course of 3 years.
51% of total token supply will be allocated to the Saddle community for liquidity mining, community incentive programs, governance treasury and more. 25.9% of the SDL tokens go to the project team, 22.5% to investors and the remaining 0.6% to consultants.
SDL can be used to pay transaction fees and incentivize liquidity providers. It also serves as the Saddle’s governance token, allowing holders to vote on decisions that may impact the entire ecosystem.
Users can earn SDL either by providing liquidity or by participating in the platform’s hackathon and grants program, bounties4bandits (b4b).
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