# Introduction

The Saber AMM, governed by the Saber DAO is an automated market maker and liquidity pool protocol on [Solana](https://solana.com/) designed for extremely efficient trading between similarly priced (pegged) assets, without an opportunity cost. The [AMM](https://saberdao.io/) is designed to cater to stablecoin trading and liquidity provision needs.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2F9AtF9aVRyJEwucRMmmNb%2Fimage.avif?alt=media&amp;token=635e927a-7bba-4db5-8713-62fce56a96e1" alt=""><figcaption></figcaption></figure>

The protocol offers a seamless and efficient environment for swapping stablecoins with minimal slippage and low fees. Powered by advanced automated market-making (AMM) algorithms, our platform ensures optimal liquidity and fair market prices for stablecoin and pegged asset pairs.

[<br>](https://docs.saberdao.io/saber-amm)


# Saber AMM

Saber AMM is strategically positioned as a hub for low-risk staking amidst large transaction volumes. It actively promotes high trading volumes by offering competitive swap pricing, thereby incentivizing arbitrage bots to engage in trading activities. Furthermore, Saber AMM demonstrates remarkable composability with other decentralized finance (DeFi) applications on the Solana blockchain, effectively reducing the opportunity costs associated with low-yield investments.

**Zero Impermanent Loss:**

Saber's StableSwap algorithm operates under the assumption that assets within a pair will ultimately converge to the same price. Consequently, it mitigates impermanent loss in a manner distinct from constant product AMMs. It's worth noting, however, that there remains a risk of price divergence from equilibrium, particularly if one asset in the pool experiences a permanent price shift. Investors are advised to conduct thorough research into the underlying assets before making investment decisions.

**Concentrated Liquidity:**

The debate over the comparative efficiency of automated market makers versus order books has persisted for quite some time. Liquidity efficiency is typically measured by two key factors: spread and depth. Spread refers to the difference between bid and ask prices, while depth pertains to the total volume that can be traded for a given percentage of price change.

Saber's algorithm recognizes the expected price consistency between assets, resulting in negligible price fluctuations during swaps. Consequently, liquidity providers on Saber have the opportunity to charge higher fees and increase profitability.


# Liquidity flywheel

#### Quick Overview <a href="#quick-overview" id="quick-overview"></a>

Saber's system uses two types of tokens, SBR and veSBR, to help protocols increase their liquidity. Here's the gist: if a protocol has enough veSBR and starts with some liquidity, they can boost their own pool's attractiveness by voting on it. This leads to higher rewards and APY (Annual Percentage Yield), attracting more liquidity.

#### The Liquidity Cycle <a href="#the-liquidity-cycle" id="the-liquidity-cycle"></a>

The idea is simple: more liquidity means more rewards, which in turn brings in even more liquidity. Here’s how it works step by step:

1. **Start with liquidity and veSBR tokens**: Protocols need some initial liquidity and veSBR.
2. **Vote on your pool**: Use veSBR to vote on your pool, making it more appealing due to higher APY.
3. **Earn and lock rewards**: Earning SBR rewards through your initial liquidity, you can then lock these for more veSBR, increasing your voting power.
4. **Attract more liquidity**: Higher APY from more voting power draws in more liquidity, which can lead to a self-sustaining cycle of growth.

**Example**

Imagine you start with 100 million veSBR, getting you 1% of the vote. If the total SBR given out daily is 500K, and your liquidity is worth $100K, you’d get around 5K SBR a day. That’s about $18,250 a year at $0.01 per SBR, or an 18.25% APR.

Locking all your rewards for more veSBR can increase your vote to 1.18%, bumping your APR to 21.53%. As others jump in for the high APR, they add liquidity until the APR balances back to 18.25%.

#### Extra Ways to Boost Liquidity <a href="#extra-ways-to-boost-liquidity" id="extra-ways-to-boost-liquidity"></a>

* **Swap Fees**: Half the swap fees go to liquidity providers, adding another way to increase liquidity.
* **Bribes for Votes**: If a protocol prefers, they can use sites like [Vota.fi](https://vota.fi/) to offer incentives for votes on their pool, pushing up APY and liquidity further.

#### Want to Join? <a href="#want-to-join" id="want-to-join"></a>

Setting up a pool on Saber or need more details? Get in touch on [Discord](https://discord.saberdao.io/).


# Asset types

#### What Kind of Asset Types Can be Traded on Saber[​](https://docs.saber.so/#asset-types) <a href="#asset-types" id="asset-types"></a>

Saber generally allows for trading between assets which means a revert in price. There are several assets that Saber specializes in:

* **USD Stablecoins:**

There are hundreds of dollar-based stablecoins in existence, ranging from dollar-backed stablecoins like [USDC](https://www.circle.com/en/usdc) and [Tether](https://tether.to/), to stablecoins backed by crypto assets such as [USDH](https://hubbleprotocol.io/) or the algorithmic stablecoin [UXD](https://uxd.fi/).

* **SOL Staking derivatives:**

Saber is a large venue for trading SOL staking derivatives such as [Marinade SOL](https://marinade.io/) (mSOL), [SolBlaze SOL](https://solblaze.org/) (bSOL) and [Jito Staked SOL](https://www.jito.network/staking/) (JitoSOL).

* **EUR Stablecoins:**

TBA

* **Bridged assets:**

TBA

{% hint style="info" %}
If any assets are missing, please reach out via [Discord](https://discord.saberdao.io/).
{% endhint %}


# Saber DAO Token

#### Introduction to Saber Governance Token <a href="#introduction-to-saber-governance-token" id="introduction-to-saber-governance-token"></a>

Welcome to the world of Saber Governance Token (SBR), a decentralized governance token that empowers holders to shape the future of the Saber protocol. As the native token of the Saber ecosystem, SBR plays a pivotal role in enabling community-driven decision-making processes and ensuring the protocol's decentralized governance.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FXDvSNmkNalONbFrTCmTF%2Fimage%20(1).avif?alt=media&amp;token=50c9b480-3b8c-402c-afa2-7f8493224cde" alt=""><figcaption></figcaption></figure>

#### What is Saber Governance Token? <a href="#what-is-saber-governance-token" id="what-is-saber-governance-token"></a>

Saber Governance Token (SBR) serves as the backbone of governance within the Saber protocol, granting holders the right to participate in key governance activities such as proposing, voting on, and implementing changes to the protocol. With [locked SBR](https://tribeca.so/gov/sbr/locker), so-called veSBR, stakeholders have the power to influence protocol upgrades, parameter adjustments, and strategic initiatives, thereby driving the evolution of Saber in alignment with the collective interests of its community.

#### Key Features and Functions <a href="#key-features-and-functions" id="key-features-and-functions"></a>

#### Voting Rights <a href="#voting-rights" id="voting-rights"></a>

Saber Governance Token holders possess voting rights proportional to their token holdings, allowing them to [vote on proposals](https://tribeca.so/gov/sbr/proposals) that impact the protocol's development, operation, and direction. From protocol upgrades to fee adjustments, veSBR holders have a say in critical decisions that shape the future of Saber.

#### Proposal Submission <a href="#proposal-submission" id="proposal-submission"></a>

SBR holders have the opportunity to submit proposals for consideration by the Saber community. Whether proposing new features, protocol improvements, or strategic partnerships, anyone holding locked SBR tokens can contribute ideas to enhance the protocol's functionality and utility.

#### Get Involved <a href="#get-involved" id="get-involved"></a>

Join the Saber [community](https://discord.saberdao.io/) today and become an active participant in governance discussions and decisions.

[<br>](https://docs.saberdao.io/asset-types)


# Ecosystem

If you would like to build on top of the Saber protocol, visit our [Grants](https://docs.saberdao.io/saber-dao/grants) section or directly [apply](https://sabergrants.org/) on our separate grants page.

#### Grand Recipients <a href="#grand-recipients" id="grand-recipients"></a>

#### **#1 Vota.fi** <a href="#id-1-vota.fi" id="id-1-vota.fi"></a>

The first Saber DAO ecosystem grant was given out to [Vota.fi](https://vota.fi/), a protocol to delegate your veSBR voting power to earn additional rewards. Vota stands as Solana's foremost vote marketplace. Participants can earn income by selling their voting power, while others can purchase this power to influence the outcomes of proposals.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FE3YjhDcD0VP4jsbSlcmM%2Fimage.png?alt=media&amp;token=0aa98814-e615-49f1-b88c-c6f0a576baed" alt=""><figcaption></figcaption></figure>

Learn [more](https://vota.fi/) about the Vota Protocol.

#### **#2 TBA** <a href="#id-2-tba" id="id-2-tba"></a>


# Risks

#### Saber Risk Disclaimer

**Introduction:** Participating in Saber decentralized stablecoin exchange involves significant risks. Users must understand and acknowledge these risks before engaging in the protocol.

**Key Risks:**

1. **Market Risk:**
   * **Volatility:** Token values can fluctuate due to market conditions, potentially leading to significant losses.
   * **Depegging:** Tokens might lose their peg to their intended value, causing instability.
2. **Liquidity Risk:**
   * **Low Liquidity:** Difficulty in buying or selling assets without substantial price impact.
   * **Withdrawal Delays:** Potential delays in accessing funds due to liquidity constraints.
3. **Protocol Risk:**
   * **Smart Contract Vulnerabilities:** Potential for bugs, exploits, or malicious attacks. \[Link to audit] (<https://github.com/saber-hq/stable-swap/blob/master/audit/bramah-systems.pdf>)
   * **System Failures:** Risks associated with protocol malfunctions or errors.
4. **Operational Risk:**
   * **Oracle Issues:** Incorrect pricing data can lead to improper collateral evaluations.
5. **Regulatory Risk:**
   * **Legal Compliance:** Changes in regulations can impact the protocol and user participation.

User should thoroughly research and understand the risks and mechanisms of the protocol and ensure compliance with applicable laws and regulations.

**Disclaimer:** Engagement with Saber exchange is at the user’s own risk. Saber does not guarantee the security, profitability, or stability of the protocol. Users should seek advice from financial, legal, and tax professionals before participating. For detailed information, visit the [Saber Documentation](https://docs.saberdao.io/).


# Solana wallets

The new Saber front-end currently supports the following wallets:

* [Phantom](https://phantom.app/)
* [Backpack](https://backpack.app/downloads)
* [Brave Wallet](https://brave.com/)
* [Solflare](https://solflare.com/)
* [OKX Wallet](https://www.okx.com/web3)


# Provide liquidity

Pools on Saber facilitate liquidity provision and token trading, enabling users to earn trading fees on the tokens they hold.

#### Deposit <a href="#deposit" id="deposit"></a>

1. Visit the [Saber dApp](https://saberdao.io/) and connect your wallet.
2. Choose the pool you would like to provide liquidity for.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FIHIfaZZMbcF3KZiz05X8%2Fimage%20(1).png?alt=media&amp;token=d69265c2-d092-4b14-a21b-a9aa487d2324" alt=""><figcaption></figcaption></figure>

3. Enter the amount of tokens you would like to supply as liquidity.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FhzNmuHlaTEYldZvveyhD%2Fimage%20(2).png?alt=media&amp;token=7cb2f442-c7b8-4666-9a80-e2e422d3f25d" alt=""><figcaption></figcaption></figure>

4. Click on 'Deposit' and confirm the TX in your wallet.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2F0ECjRxz0kRsu7jMIXVKN%2FScreenshot%202024-06-13%20at%209.58.23%E2%80%AFAM.png?alt=media&amp;token=c37574d5-91b4-471b-b0d9-19144dce514f" alt="" width="375"><figcaption></figcaption></figure>

5. Your tokens are now successfully added as LP tokens.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FgsBHjdMZ5yuELLDustDf%2FScreenshot%202024-06-13%20at%209.58.48%E2%80%AFAM.png?alt=media&amp;token=b25e9204-162b-4511-84c4-a326cb15c6a4" alt=""><figcaption></figcaption></figure>

Your tokens are successfully deposited and you are earning trading fees on the supplied pair.

#### Withdraw <a href="#withdraw" id="withdraw"></a>

1. Navigate to the 'Withdraw' section.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FYI2A5sMjBSiid1T4CR4e%2Fimage%20(3).png?alt=media&amp;token=33f0632f-c8b0-488d-a436-7a95208aa508" alt=""><figcaption></figcaption></figure>

2. Enter the amount of tokens you would like to withdraw and click the 'Withdraw' button.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FfsT8t6jsLjckf5CDI8FW%2FScreenshot%202024-06-13%20at%209.59.37%E2%80%AFAM.png?alt=media&amp;token=9d4d1090-aedb-46a2-b0b3-e9fc1e5d4e22" alt=""><figcaption></figcaption></figure>

3. Confirm the transaction in your wallet.

If you want to stake your LP tokens to earn additional yield besides trading fees, [learn here how to stake them](https://docs.saberdao.io/getting-started/stake-lp-tokens).


# Stake LP tokens

In addition to earning trading fees from providing liquidity, you can stake your LP tokens to earn emissions distributed as SBR tokens to the liquidity pools.

#### Stake <a href="#stake" id="stake"></a>

1. Click on the 'Stake' button and choose the amount of LP tokens you would like to stake.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2Fkkep8r6YrAhJVPqzxEXl%2FScreenshot%202024-06-13%20at%2010.00.09%E2%80%AFAM.png?alt=media&amp;token=c4ce9e9b-42e4-4b82-bfec-c6d7734a2c2e" alt=""><figcaption></figcaption></figure>

2. Click on 'Stake' and confirm the transaction request in your wallet.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FM2wRHOAz8mF6bYqdwlGt%2FScreenshot%202024-06-13%20at%2010.00.34%E2%80%AFAM.png?alt=media&amp;token=c3f2dd16-7473-4630-90b2-9f2fafa704d8" alt="" width="375"><figcaption></figcaption></figure>

3. Your LP tokens are now successfully staked and you immediately start earning SBR as rewards.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2Fx6ErF56uRVv3Qwan75i4%2FScreenshot%202024-06-13%20at%2010.01.06%E2%80%AFAM.png?alt=media&amp;token=47e84c19-a9b7-4e53-ab16-f316e8be43b0" alt=""><figcaption></figcaption></figure>

4. To claim your rewards, simply click on the 'Claim' button and confirm the transaction in your wallet.

#### Unstake <a href="#unstake" id="unstake"></a>

1. If you want to unstake your tokens, click on the field 'Unstake'.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FLoY2gBLUICdkYnKpQ9oZ%2FScreenshot%202024-06-13%20at%2010.01.38%E2%80%AFAM.png?alt=media&amp;token=22821d2e-bddd-4d8d-a8fe-be45b25ad163" alt=""><figcaption></figcaption></figure>

2. Enter the amount of LP tokens you would like to unstake and click the 'Unstake' button

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FgbOKQoKow6gRsRZeND6M%2FScreenshot%202024-06-13%20at%2010.01.56%E2%80%AFAM.png?alt=media&amp;token=3371dd15-c2ce-4fce-870a-b34ade5ae9b0" alt=""><figcaption></figcaption></figure>

3. Click on 'Unstake' and confirm the transaction in your wallet.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2F3Q0ZvdA9gYx65e534gSE%2FScreenshot%202024-06-13%20at%2010.02.38%E2%80%AFAM.png?alt=media&amp;token=9b1c8e55-27a6-4e9b-91d0-624fba5bda61" alt="" width="375"><figcaption></figcaption></figure>

4. Your LP tokens are now unstaked and can be used either in another protocol or the liquidity can be fully withdrawn.


# Lock SBR

If you want to take part in governance decisions, you need to lock your SBR tokens for a certain period.

1. Buy SBR - we would recommend [Jupiter](https://jup.ag/swap/SOL-SBR) for the best trade execution.
2. Head over to the [SBR locker](https://tribeca.so/gov/sbr/locker).

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FgTDnZlSHer9BUQlqqEW7%2FScreenshot%202024-06-13%20at%2010.03.27%E2%80%AFAM.png?alt=media&amp;token=0eda32b7-577c-40fa-867e-1177be052cb3" alt=""><figcaption></figcaption></figure>

3. Click on the 'Lock' button and choose the amount of SBR you want to lock and the lock period.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2F0xOWHGlV1q5L3DrA93yr%2FScreenshot%202024-06-13%20at%2010.03.40%E2%80%AFAM.png?alt=media&amp;token=1189ec6d-58cf-4af6-b8f3-ac5fd9a396ac" alt=""><figcaption></figcaption></figure>

4. Click 'Lock Tokens' and confirm the transaction in your wallet.

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FuQjoAF0VqFG2L1sYn09h%2FScreenshot%202024-06-13%20at%2010.04.01%E2%80%AFAM.png?alt=media&amp;token=3a2e5552-6c34-4527-899e-56c20b34da55" alt="" width="375"><figcaption></figcaption></figure>

5. You can now create or vote on proposals in the [governance forum](https://tribeca.so/gov/sbr/proposals) and vote on [gauges](https://tribeca.so/gov/sbr/gauges).

<figure><img src="https://4178026243-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUaCK7mQmCoZp61SgUoBN%2Fuploads%2FnBsAx9XuAM4no5dLwdqQ%2FScreenshot%202024-06-13%20at%2010.04.26%E2%80%AFAM.png?alt=media&amp;token=21ba371d-e31d-4030-b3d9-3a667cb0f1c8" alt=""><figcaption></figcaption></figure>

If you don't want to vote manually for gauges, you can simply [delegate your veSBR](https://docs.saberdao.io/getting-started/delegate-vesbr).