One of the key new features of Saturn Protocol v2 is automatic market making. Instead of continuing with the on-chain order book architecture, we are adopting the liquidity pool approach for Saturn Protocol that makes capital allocation easier and more efficient.
Market making is a known profitable strategy that exists for every asset on Earth. Traders provide liquidity to the market, so that traders that want to buy or sell a token can do it in one transaction, quickly. In return for providing this service to the market, the market makers earn a little profit on every trade.
While we have published our open source market making bots for Saturn Protocol v1, we have seen very slow adoption of this technology, partially due to technical concerns. We have been asked to make it easier for crypto investors to earn money on market making, and Saturn Protocol v2 will deliver on this request. Automatic market making, combined with our open source bots, Saturn Rings and token self listing also unlocks another desirable achievement- Automatic Price Discovery - which will greatly improve trader experience, liquidity, and fees collected by the protocol for Saturn Token investors.
The way investors can take advantage of automatic market making is very easy. Simply pool Saturn Tokens (SATURN on Ethereum, STRN on Ethereum Classic) and the desired token (e.g. ETH, DAI or NTRO) in two clicks on a dashboard, and earn profit in real time from fees collected on every trade of the second token, proportional to your stake in the pool. The more tokens you contribute, the more you earn. You can withdraw your pooled tokens and your earned profits at any time - true decentralized market making.
In addition to that, every Saturn Token that you contribute towards any liquidity pool (e.g. ETH, DAI, LINK, NTRO pools) will count towards your stake in Saturn DAO, giving you the right to vote on how the DAO allocates its funds, on changing the fee structure of the protocol, and participate in DAO Dividends Distribution.
Traders will still be able to use limit orders (current mode of operation of Saturn Protocol v1) using Saturn Rings, which will aggregate liquidity across multiple providers, including Saturn Protocol v2, ensuring our traders get the best possible price across all DEXs for their token swaps.
Future is bright!
Read more about Saturn Protocol V2 below, an upcoming major exchange protocol upgrade which will bring token to token pairs, automatic market making, DAO activation, dividend payments and much more!