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.

Saturn DAO: Technical Details

Saturn Protocol v2, and Saturn DAO which is a part of it, is a collection of smart contracts working together to pool liquidity, allocate it to the right parties, and provide the best uncensorable DEX experience to crypto traders.

Saturn Protocol v2
Learn the key features of the Saturn Protocol v2 upgrade: token to token trading, automatic market making, DAO governance, regular dividend payouts and more.

This is a complicated and loaded statement. Let's progressively describe each component of this smart contract ensemble. By the end of this article, you should have a good understanding of what all components of Saturn Protocol v2 are and how they work together.

First, we will show a bird's eye view of all the components in the protocol. Then, we will review each individual component in detail and outline its purpose and function.

Component Overview

High Level Component Diagram

Saturn Rings

Saturn Rings are the user interface portals that connect users to the protocol. Saturn Network is the first Saturn Ring of many more to come. If you have ever used our decentralized exchange you have already used a Ring.

Saturn Rings cooperate by connecting to Saturn Protocol, as all of them access the same shared liquidity. We will also share our code in the form of open source and docker images to allow interested developers and business owners to integrate our technology with their websites in a cost efficient way.

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.

Saturn Rings provide important services for the community, such as

  • Attracting more liquidity and more traders to the Protocol, acting as decentralized affiliates.
  • Improving uncensorability by providing access to Saturn Liquidity Pools via different domains and different protocols, such as HTTPS, TOR, i2p, IPFS, SIA Skynet.
  • Providing access to DAO Voting for governance, roadmap proposals and dividend payouts.
  • Run trading bots that ensure liquidity is always available at a fair price, such as cross-chain market making bots, atomic arbitrage bots, tokenized trading strategies and others.
Tokenized Trading Bots | Saturn Exchange
Neuron outlines a new feature that we will implement by combining Atomic Arbitrage with our Ethereum Dev Kit, giving Saturn users the option of investing in tokenized trading bots.

While running these trading bots is profitable, it may be too technical and may require certain capital commitment that is not a good fit for most casual traders. However, by lowering the barrier to entry we envision a wide range of developers and business owners running plenty of Saturn Rings.

Trade Router

Trade router is the interface that traders and the Rings use to access liquidity of Saturn Protocol. It is also responsible for collecting fees for the DAO, as well as for the self-listing process and potential fees associated with it.

Token-to-token Trading on Saturn Protocol
Saturn Protocol v2 will allow the successful launch of Token-to-Token trading pairs. Here we outline how new token to token markets will emerge.

The DAO stakeholders can vote to change fee amounts as well as to impose fees on listing new tokens or outright delisting tokens from the protocol if it considers it beneficial to the long term success of the DAO.

Liquidity Pools

Saturn Liquidity pools are a new #DeFi primitive that allow investors to earn realtime profits on every trade that uses a given token. Unlike some of the other protocols like Uniswap, where you need to pool ETH and the token in question, on Saturn Protocol v2 you pool the token (e.g. DAI, ETH or WBTC) along with the Saturn Token on the corresponding chain (STRN on Ethereum Classic blockchain, SATURN on Ethereum blockchain).

This creates demand for Saturn tokens and corresponding scarcity which should positively impact the price of Saturn tokens - the more used the protocol is, the higher fees are being paid out as dividends, the more investors want to buy Saturn tokens.

Investors are rewarded for providing liquidity to the pools by realtime profits on trades of given token, as well as higher voting power and dividend earning power in the Saturn DAO.

Saturn Liquidity Pools
Saturn Liquidity Pools is an exciting new DeFi feature that allows investors to earn from automatic market making by staking any token along with Saturn Tokens.

Saturn DAO Governance

The DAO smart contracts serve to coordinate incentives for every participant, ensuring long term prosperity for every party involved. The DAO collects fees from every trade done on the protocol, and its job is to allocate this capital. The uses for this capital are

  • Distribute dividends to stakeholders.
  • Hire workers to do maintenance work for the DAO (e.g. server hosting for the Rings, marketing expenses and community management).
  • Vote to change fees in the protocol to improve coordination of incentives for every stakeholder involved.
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?

DAO Workers

Starting with Saturn Protocol v2 release, the roadmap for further work on the protocol falls on the shoulders of the community via proposal driven development, and the burden of making funding decisions for this work falls on the shoulders of Saturn DAO and its stakeholders.

Anybody with a cryptocurrency wallet can submit a proposal on what they can do for the DAO to make it more prosperous, more famous and to make it more used which translates into more fees collected. The stakeholders and investors vote on proposals that they like, and good proposals will receive funding from the DAO.

Work for Saturn DAO
How can an on-chain DAO pay its investors and workers to continue growing? Coordinate with people in a trustless way? Let’s dive into it together.

DAO Investors

There are two ways investors can allocate their capital towards Saturn Protocol and Saturn DAO success.

  • Stake Saturn Tokens directly with the Saturn DAO smart contract.
  • Stake their Saturn Tokens along with other tokens into Liquidity pools, which improves liquidity of the protocol and gives them more voting power and higher dividend claims.

In return, the investors earn profit from the following:

  • Saturn Token price increase.
  • Realtime fees collected inside liquidity pools.
  • Dividend payouts from Saturn DAO.
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?

Summary

Saturn Protocol v2 can be logically divided into components that each perform their function, and are composed into one system that properly aligns incentives of traders, investors, DAO members and workers to ensure that the protocol continues to grow and provide the best trading experience to its customers.

Future is bright!

New to Saturn Network?

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 for community governance, 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.

Find Team Saturn on Twitter, subscribe to our subreddit and join our community forum to suggest new features and engage with other Saturn DAO members.

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