Early April we released an open source ERC20 Wrapper, this release was not part of our original development roadmap and has brought up several questions from our community members. This article will go through our thought process for developing an ERC20 wrapper and explain the difference between SATURN and SATURN20.
As they say: highsight is 20/20. Three years ago it was impossible to say which token protocol would emerge as the most useful. We chose ERC223 due to it being technically superior, which is something we still stand by:
- All ERC223 trades happen in 1 transaction, while for ERC20 you must do 2 transactions for approve.
- It is safer for investors, as there is less risk of sending your tokens to a wrong address and losing them forever.
We find it surprising that the industry ended up rallying around ERC20. Even ETC Labs and other ETC leadership teams are promoting ERC20 instead of using ERC223 which was born on the classic chain.
Regardless of this philosophical discussion, it makes no business sense to isolate oneself. The whole point of the blockchain is interoperability of protocols working together to create the future of finance, in which we will hold a prominent role. For that to happen we need our token to work with other exchanges and #DeFi
dapps. To that end we have developed, open sourced and released ERC20 Wrapper for ERC223 tokens.
This code allows you to make a ERC20 coin from your ERC223 token, and let people freely convert back and forth between the two standards in one transaction while remaining 100% decentralized. Total supply of your coin remains intact, token economics remain unchanged - but you have gained interoperability with the ERC20 ecosystem. That's a win-win!
What is the difference for Saturn DAO and Saturn Protocol?
Furthermore, due to the nature and implementation of our DAO smart contracts, this will turn into a positive event for our ERC223 token holders. We'll be able to give these two coins distinct meaning:
- SATURN ERC223 is the utility token of Saturn Protocol.
- SATURN ERC20 is the exchange traded token that is listed on other DEXs and CEXs like Uniswap, Kyber, Binance, Coinbase, Gemini - everything that supports
The two tokens share the same total supply
Those who want to trade SATURN and speculate on its value on exchanges will convert their holdings to SATURN20 and will trade on other exchanges. Those who want to participate in Saturn Protocol governance and provide liquidity to the protocol will keep their SATURN (erc223) tokens and stake them in our DAO.
This has an interesting side effect. The more people use the ERC20 token, the less ERC223 exists (and thus SATURN tokens become more scarce), meaning your share of SATURN increases, which in turn leads to higher dividend payments.
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!