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What is Saber exchange? How to use and trade on Saber

  1. 1. What is Saber exchange?
  2. 2. Why need a Stablecoin exchange?
  3. 2.1 What are stablecoins?
  4. 2.2 Potential of Saber exchange
  5. 3. Why did Saber choose AMM as its operating model?
  6. 3.1 Easier Marketplace for New Assets
  7. 3.2 Capable of using capital and fees efficiently
  8. 3.3 Ability to combine and use LP Token
  9. 3.4 Improve the user experience
  10. 4. How is Saber's AMM designed?
  11. 4.1 Design of MTPs (Multi Token Pools)
  12. 4.2 Why did Saber choose to design 2Pools?
  13. 4.2.1 Efficient distribution of liquidity
  14. 4.2.2 Reducing Systematic Risks and Temporary Loss
  15. 4.2.3 Ease of Asset Balancing
  16. 5. Advantages of Saber Exchange
  17. 5.1 Low slip mechanism
  18. 5.2 Fast transaction speed and cheap transaction fee
  19. 6. User Guide Saber
  20. 6.1 Instructions for connecting to Sollet Extension
  21. 6.2 Instructions for Swap on Saber Exchange
  22. 6.3 Instructions for providing Liquidity on Saber exchange
  23. 6.4 Farming Instructions on Saber
  24. 7. Should you invest in Saber?
  25. 7.1 Competitive advantage
  26. 7.2 Challenge
  27. 7.3 What should be improved?

What is Saber exchange? When you wonder which exchange for choosing to invest in, Saber is a good suggestion that investors can refer to. What are the advantages and disadvantages of the new Blockchain platform? How does it work? The article's content shared by BHO Network below will provide everyone with the necessary information.

1. What is Saber exchange?

Saber Exchange is a platform that allows users to trade directly without a third party (AMM DEX). The system is designed specifically for the Stablecoin of Solana ecosystem and built on the Blockchain system to quickly help the transaction process. In addition, Saber allows users to minimize slippage.

Recently, developers combined Ren Protocol to Launch the renBTC and BTC asset pair on Saber's Liquidity Pool. Currently, Saber is no longer considered an AMM DEX for Stablecoins. Instead, Saber in the future, will become the AMM DEX for Pegged Assets.

Saber transactions without intermediaries

2. Why need a Stablecoin exchange?

Stablecoins are seen as an alternative to traditional payment methods in the future. Thanks to this, Saber exchange has more and more potential in the future.

2.1 What are stablecoins?

Stablecoins are stablecoin of value developed by Blockchain and can be used as collateral in lending protocols. Therefore, Stablecoins play an increasingly important role and are likely distributed worldwide.

Stablecoins have stable value

2.2 Potential of Saber exchange

In less than a year, the total assets of the locked system have increased more than 20 times, from $9 billion TVL in October 2020 to $206 billion TVL at the moment. This is quite a spectacular growth.

The strong growth of the DeFi market

The sudden growth of the TVL index of DEX exchanges on Solana (reaching nearly $7B TVL) and the total amount of assets topping the stable coin exchange Curve (earning more than $40 billion TVL), has attracted large inflows of money from Investors.

TVL index of DEXs on Solana

3. Why did Saber choose AMM as its operating model?

To meet future needs, replacing traditional payment methods, Saber changes the transaction of Stablecoin assets to a place as fast as possible with the lowest possible fees and slippage and probability.

3.1 Easier Marketplace for New Assets

A stable AMM will make it easy to bring a new asset to Solana. For example: if USDC is transferred from Avalanche to Solana, the support is now in the form of aaUSDC and cannot directly participate in DApps on Solana. Although, in essence, 1 aaUSDC = 1 USDC, Saber AMM is a place where aaUSDC to USDC can be converted quickly.

Easier to market for new assets

3.2 Capable of using capital and fees efficiently

Since Stablecoins are a currency with low volatility, fees are an essential part of revenue for a liquidity provider. This has a direct impact on the profitability of the business. LP on AMM will receive a percentage of users' transaction fees, improving capital efficiency.

3.3 Ability to combine and use LP Token

Is the ability to allow liquidity providers AMM to use LP Tokens to connect other applications in the ecosystem.

3.4 Improve the user experience

Provide users to execute different trading orders such as Stop- Limit, Limit,.... These order types are precious for trading assets with large fluctuations and fast.

4. How is Saber's AMM designed?

Saber AMMs allow users to own more than two assets in a liquidity pool and often for a collection of Stable Tokens, also known as 2Pools design. With three investments in the pool, it is called 3Pool (USDC-USDT-DAI) attracting billions of TVL and completing large transaction volumes quickly.

4.1 Design of MTPs (Multi Token Pools)

With this design, the following effects can be obtained:

  • Focus on deep account for a small number and help groups have non-overlapping assets.
  • Reduce the incremental costs due to the combination with the optimization of algorithms (instead of using the basic algorithm of x*y=k AMMs like Uniswap).
  • Fast transaction speed and response time.
  • Users can exchange any n assets for another in a single transaction.

However, for a perfect experience, users should also combine routers in the 2 Pools design.

Multi Token Pools optimize user experience

4.2 Why did Saber choose to design 2Pools?

Saber decided to use the 2Pools design because the product is more capital efficient, has a faster runtime, and is safer to use. In addition, the product has distinct advantages in the Solana environment as follows:

4.2.1 Efficient distribution of liquidity

In 2Pools, direct relationships are established without overlap between pairs, and liquidity is never wasted like 3Pools.

2Pools has an efficient liquidity distribution

4.2.2 Reducing Systematic Risks and Temporary Loss

All cryptocurrencies have varying degrees of systemic risk when one of the Stablecoins inside the pool is compromised and will be at risk. The more assets in a pool, the higher the risk.

Saber uses an intelligent router system, this way, users can swap bridging (almost sharing liquidity between pools) without sharing risks. Only liquidity providers that often experience problems are exposed to systemic risk.

4.2.3 Ease of Asset Balancing

For MTPs design, it becomes even more challenging to maintain balance with multiple assets in a pool, so Saber using the 2Pools method will minimize the risk of imbalance more equity and capital efficiency. The reason is that the relationship between two assets will have fewer variables.

Easier to balance assets

5. Advantages of Saber Exchange

Saber has attracted a lot of attention from investors thanks to its outstanding features that other exchanges do not have. So what are the advantages of this platform? The content below will help you learn more.

5.1 Low slip mechanism

Saber has slippage of only 0.2%. Meanwhile, other exchanges like Raydium,... have slippage of up to 0.8%, or maybe four times higher than Saber. With numbers up to tens and hundreds, Saber can also play a role in transactions with a volume of more than 100 000 dollars, the slippage in Raydium can be up to 1%.

5.2 Fast transaction speed and cheap transaction fee

The second fastest transaction speed when reaching up to 65 000 TPS with a very preferential transaction fee of only about $ 0.005 per transaction.

Fast speed and low cost

6. User Guide Saber

Saber is supporting users with Swap, Pool, and Farms features. You need to create a Saber account to log in and connect your wallet to be able to trade on the platform.

6.1 Instructions for connecting to Sollet Extension

Wallet In addition to the Sollet Extension wallet, you can use other wallets such as Ledger, Solflare, Sollet, Coin98, MathWallet, Phantom... to transact. How to connect the wallet is done as follows:

  • Step 1: Install Sollet Wallet Extension.
  • Step 2: Connect Wallet with Saber exchange.

First, select Sollet Extension

Enter the previously created password and press UNLOCK to unlock the wallet

Click Connect to finish

6.2 Instructions for Swap on Saber Exchange

Token Swap on Saber is the same as Sushiswap and Uniswap. If you have ever swapped on Uni or Sushi, you can apply the operations on this platform. The steps to use Saber are as follows:

  • Step 1: Click Swap on the toolbar.
  • Step 2: Next, you will enter the token you want to swap out, enter the amount and click Review.
  • Step 3: You view the parameters and click Confirm Swap.
  • Step 4: Enter the password in the Sollet wallet and click Unlock, and then Approve is done.

Click Swap

Enter the amount you want to Swap

The Review table will have the following parameters:

  • Swap from: the number of tokens used to Swap.
  • Minimum Received: the minimum number of tickets.
  • Exchange Rate: Exchange rate.
  • Price Impact: Slippage.
  • Liquidity Provider Fee: Fees for liquidity providers.

Table of Preview parameters

Enter password to confirm

6.3 Instructions for providing Liquidity on Saber exchange

To provide Liquidity on Saber, players need to follow the basic steps below:

  • Step 1: Click on Pools.
  • Step 2: Select the pair of liquidity accounts you want to Deposit.
  • Step 3: Enter the amount you want to Deposit.
  • Step 4: Click Confirm after viewing the parameters on Preview.
  • Step 5: Enter the password to confirm (as shown above).

Step 1 of the process

Select the account pair you want to Deposit

After viewing the Preview parameters, click Confirm

You can remove the Pool that was previously provided with Liquidity by selecting the Withdraw item, selecting the amount of % you want to withdraw, and then clicking the Withdraw box below.

How to remove Pool

6.4 Farming Instructions on Saber

After successfully providing Liquidity, please click the Farms button next to Farming the number of SLP tokens received.

  • Step 1: Click on Farms.
  • Step 2: Enter the number of SLP tokens you want to Stake and click Deposit.
  • Step 3: Enter the confirmation password and click Unlock to finish. To open Stake, you will select Unstake, enter the amount, and click Withdraw.

Click Farm on the toolbar

Enter the desired amount and press Deposit

Enter password to confirm

7. Should you invest in Saber?

Whether to invest in Saber is a question for many players when participating in the cryptocurrency market. The answer to this question will be detailed below by BHO Network.

7.1 Competitive advantage

The slippage rate of Saber exchange is relatively low, and this is a competitive advantage compared to other exchanges in the market. From the very beginning, Saber has positioned users to trade Stablecoins with low slippage, low cost, and fast speed, thereby increasing trust in the trading platform.

7.2 Challenge

The direct competitor of Saber exchange is Mercurial, and when the exchange has changed shortly, Saber will also be affected. Projects that are not improved will inevitably leave cash flows and lose attractiveness among investors.

The project is in danger of being abandoned without the upgrade

7.3 What should be improved?

The Saber project is still focused on attracting mainly investors holding a significant amount of Stablecoins. The system will ensure optimal profits and limit risks to the allowed level. The exchange also upgraded and took advantage of the high rewards of newly opened liquidity pools for new users to operate efficiently. Saber can add value to the $SBR Token to impress investors.

Thus, BHO Network has helped you learn about "what is Saber exchange" and related information about Saber so that readers can better understand the product. If players want to invest safely, choose Saber to participate in the first days. If anyone has any questions about the cryptocurrency market, please contact the business's consulting team for answers. For more helpful information about the financial market, please update the following articles of BHO!

Published on April 14, 2022

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