Liquidity
Last updated
Last updated
Liquidity on Saturn Swap works very differently from any other DEX on any other Blockchain.
The Saturn Swap liquidity system deploys a user owned smart contract that periodically sets limit orders onto the main swap contract within a price range chosen by the user.
Since limit orders earn protocol fees, this system allows traders to gain similar functionality to automated market maker (AMM) DEXs while the protocol remains pure orderbook.
Before providing liquidity, users must deploy their own liquidity smart contract. This contract is moderately large meaning there is a one-time cost for deploying the contract on the chain at around ~28 ₳.
This is only a one-time cost and the protocol is able to dramatically reduce trading fees as a result.
On Saturn Swap, liquidity providers only need to provide 1 asset of the trading pair. A provider's liquidity will be shown as waiting liquidity and order liquidity.
Waiting liquidity is liquidity that is waiting to be put into the order contracts.
This will not be traded until it turns into order liquidity which happens periodically every few minutes, depending on your balance.
Saturn Swap will also display all of the fees earned in ₳ so you can watch a portfolio grow!
Liquidity provider fees are per pool depending on the fee % that was chosen when the pool was created. This can range from a 0.3% Liquidity provider fee to a 1.5% Liquidity provider fee. Liquidity providers and limit orders (makers) earn the fee while the market orders (takers) pay the fee. Saturn Swap's fee is 15% to 30% of the LP fee depending on the pool at creation time.
