A key new feature of Saturn Protocol v2 is the new #DeFi primitive that we call Saturn Liquidity Pools. This feature allows investors to stake any token (along with Saturn Tokens) and earn realtime profits on every trade that involves this token. The more you stake, the higher proportion of the total fees you earn for yourself.
This idea has always been in our heads, however the way we initially approached it may not have been the most scalable one. The new protocol version incorporates lessons learned from our experience and joins the success of other decentralized finance (or #defi for short) protocols.
The key difference between Saturn Protocol v1 and Saturn Protocol v2 is the complexity and cost of Market Making. It has long been known that Market Making is a profitable trading strategy, to the point that traditional stock exchanges like NYSE ban others from doing these trades and instead sell exclusive rights to this trading strategy to their close friends. On Saturn Protocol, it was always available to anyone, and there are a number of traders who have made steady profits over the years market making top traded coins.
However, we want not just some traders, but every trader to be able to earn money from market making, because it improves liquidity for every participating token and makes the DAO more profitable. Defi protocols solve it by turning the market upside down - instead of running a market maker bot on a decentralized order book, they become the exclusive algorithmic market maker.
This has two benefits. The first is that it is much easier to earn profits from market making by simply clicking a couple of buttons on the website, compared to running a server with a trading bot. Despite our best efforts, very few people have the knowledge and desire to learn how to write trading bots, and we must adapt to make it radically easier to become a market maker.
The second benefit is that algorithmic, decentralized market makers for every token that are by definition always online, allow us to enable token-to-token trading and automatic price discovery on Day 1 of launching the new protocol, which will make trading easier, more user friendly and will greatly increase trading volumes that our protocol sees. In fact, token-to-token trading has been one of the most requested features, and we are happy to announce that it will finally be delivered with Saturn Protocol v2.
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, dividend payments and much more!