Automatic Market Making

Saturn Protocol v2 will enable a key new feature for further growth and liquidity: decentralized automatic market making. Here we outline how it will work.

Automatic Market Making

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.

Saturn DAO: Technical Details
Discover how every moving component in the exchange protocol works hand in hand with Saturn DAO. Understand the technical details of each component, its purpose and function.
Protocol technical details

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.

How profitable is market making on different exchanges
In this blog post we’ll cover the basics of what is market making strategy, describe its pitfalls, and calculate profitability of market making on different exchanges with various cryptocurrencies. Please enjoy.

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.

Saturn Protocol: Automatic Price Discovery
As the exchange protocol moves to embrace DeFi with automatic market making, liquidity pools and token to token trading pairs, how will will the price of token markets be set? Here we outline how automatic price discovery will work.

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.

Saturn DAO Governance
Deploying Saturn Protocol v2 is part of Stage 5 of our roadmap that sees DAO activation: enabling community governance secured on by blockchain. How will Saturn DAO governance and stakeholder’s voting power work?

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.

Saturn Rings: Incentivized mirrors for Saturn Protocol
Saturn Rings is a new feature that will enable an incentivized way of launching mirrors for Saturn Protocol v2. A decentralized affiliate model of launching an exchange or just one market.

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!

Saturn Protocol v2
Saturn Network plans major exchange protocol updates to improve overall liquidity and dapp interoperability on Ethereum and Ethereum Classic.
The Final HODL: Prometheus
Saturn Investment Program launches the final HODL: Prometheus. Saturn Protocol v2 will bring DAO activation, profit sharing, automatic market making and much more.

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