SaucerSwap is the first decentralized exchange on the Hedera network, offering its users a full suite of DeFi services.

US$15M+

Total value locked

US$10M+

Total swap volume

US$1M+

Liquidity via hashport

"Hedera has some obvious advantages to other L1 blockchains, including those around speed, trust, and cost, and allows us to think pretty openly and get creative about what a DEX can be and what kind of functionality we can offer to our users."

Peter Campbell

Co-Founder & Operations Co-Lead, SaucerSwap

Industry

Financial Services

Use Case

Decentralized Finance

Overview

SaucerSwap is the first decentralized exchange to launch on the Hedera network, offering a full range of DeFi services for participants, facilitating the deployment of projects on the Hedera, and growing the Hedera ecosystem.

Challenge

SaucerSwap required a public ledger that could only support the array of DeFi services they wanted to offer on their decentralized exchange but could rapidly scale while maintaining high performance, while also ensuring low transaction fees for participants.

Solution

SaucerSwap launched its DEX on the Hedera network thanks to the ability to conduct financial transactions, including token swaps through a smart contract service. The network’s ability to support fast and high-volume transactions with much lower fees than DEX’s on alternative networks. Additionally, the SaucerSwap leverages the Hedera consensus service to support its governance structure, providing a transparent and immutable log of platform policies.

The promise of decentralized finance

The rapid popularity of decentralized finance (DeFi) has helped transform finance. Defined as “peer-to-peer financial services on public blockchains,” DeFi has shown that moving away from the more centralized and exclusive nature of traditional financial systems has massive appeal to investors across the economic spectrum.

DeFi offers the promise of a decentralized system that removes the need for financial intermediaries who can impose things that are fast becoming a turn-off for investors: fees, inefficient transactions, and exclusionary financial instruments, to name a few. DeFi brings financial control to individuals transparently, securely, and in an inclusive way.

Digital exchanges (DEXs) are the gateway to DeFi, as they unlock participation opportunities in decentralized finance by acting as marketplaces where individuals or organizations can purchase or trade digital assets, such as cryptocurrencies or non-fungible tokens (NFTs), in a non-custodial way, meaning there is no need for intermediaries to facilitate the transfer and custody of funds.

For a DEX to provide the maximum benefit to users, it needs to offer a range of financial instruments while also ensuring that the transactions that take place on the exchange are transparent, secure, highly performant, and don’t impose a fee structure that inhibits participation.

SaucerSwap: The pioneering DEX on Hedera

SaucerSwap, the first decentralized exchange on the Hedera network, has taken advantage of the many benefits Hedera and its native services offer to establish itself as a trusted marketplace for financial activities, such as token swaps, on Hedera.

SaucerSwap is based on an automated market maker (AMM) protocol. It facilitates the trading of digital assets between participants and ensures liquidity on the exchange through incentivizing liquidity providers; participants are rewarded for contributing (staking) their tokens to inject liquidity and earn rewards. This is not unique to DEXs, but SaucerSwap is the first to offer this on Hedera. SaucerSwap provides a full suite of DeFi services beyond token swaps and staking to liquidity pools, including yield farming and single-sided staking. Both increase DEX liquidity by incentivizing participants to stake or invest cryptocurrency.

The native token for SaucerSwap is $SAUCE at token ID 0.0.731861.

0.0.731861: The promise of decentralized finance

Choosing Hedera for DeFi applications

Why did the team at SaucerSwap decide to move toward Hedera for the launch of their DEX? For starters, the Hedera network’s low transaction fee structure was highly attractive as fees for transactions on other networks can charge exorbitant fees (such as gas fees on Ethereum-based networks), which can be prohibitive to transaction volume on the exchange. Fees are minimal on Hedera, at less than $0.01 USD per transaction, and the network can support volumes of more than 10,000 transactions per second, which is essential for supporting the DEX as it scales.

The specific services that SaucerSwap is leveraging include the Hedera Token Service (HTS) and Smart Contract Service (HSCS). The HTS offers the ability for users to mint and manage fungible and non-fungible tokens on Hedera without the need for smart contracts, which is different from traditional ERC 20 tokens, which are much more programmatically complex and require smart contracts to function. HTS eliminates this dependency, thereby reducing friction for end users considerably. When combined, HTS and HSCS enable the swap of fungible tokens on Hedera with incredibly low, predictable fees and fast speeds; transaction finality is reached in mere seconds rather than minutes, as seen on traditional blockchain networks.

Additionally, fairness is fundamental to the SaucerSwap team. The Hedera network, which uses the hashgraph algorithm, doesn’t have a mempool. Why is this important for fairness? On traditional blockchains, a mempool acts as a temporary holding pool for network transactions as they wait to be processed and added to a block. This invites front running, where some transactions may be pushed to the front of this holding pool, getting ahead of other trades and jeopardizing the fairness of transaction ordering. On Hedera, there is no threat of front running as no blocks are involved, and each transaction on the network is guaranteed to be ordered fairly.

Finally, for SaucerSwap, it's essential that their DEX is a good steward of the Hedera ecosystem and helps other projects establish themselves. One way it achieves this is by helping accelerate the development of projects using the Hedra Token Service on the network. For example, if an HTS project doesn't have a liquid market for its token, it can find that liquid market by simply creating a liquidity pool on SaucerSwap. This is similar to how other networks have developed their DeFi ecosystems and should also benefit Hedera.

With an eye on the future, SaucerSwap has an exciting roadmap, adding services such as community pools, gamified features, and social functionality. The team at SaucerSwap has done a fantastic job of establishing the first DEX on Hedera, and their future looks incredibly bright.

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Hedera is not affiliated with, and does not sponsor or endorse this project.

Industry

Financial Services

Use Case

Decentralized Finance

Overview

SaucerSwap is the first decentralized exchange to launch on the Hedera network, offering a full range of DeFi services for participants, facilitating the deployment of projects on the Hedera, and growing the Hedera ecosystem.

Challenge

SaucerSwap required a public ledger that could only support the array of DeFi services they wanted to offer on their decentralized exchange but could rapidly scale while maintaining high performance, while also ensuring low transaction fees for participants.

Solution

SaucerSwap launched its DEX on the Hedera network thanks to the ability to conduct financial transactions, including token swaps through a smart contract service. The network’s ability to support fast and high-volume transactions with much lower fees than DEX’s on alternative networks. Additionally, the SaucerSwap leverages the Hedera consensus service to support its governance structure, providing a transparent and immutable log of platform policies.

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