Sake Swap’s creation was motivated by Uniswap and Sushiswap. Its goal is to improve the price and rewards within the AMM. We can confidently say that Sake Swap is forked from Sushiswap and Uniswap but with significant developments.
Sake Swap brings you the SAKE token. SAKE token ensures that holders have the governance rights and part of the fees goes to the protocol. This implies that sooner or later, the protocol’s ownership will fall into the holders’ hands.
Furthermore, the same SAKE tokens allow liquidity providers and traders to continually reap the protocol’s development benefits. As a result, early entrants will be the major shareholders at Sake Swap.
Sake Swap’s Structural Overview
As opposed to SUSHI tokens with unlimited total volume, the SAKE token has a limit. Having a limit is essential as it prevents dilution and improves project sustainability. Also, when it comes to sharing transaction fees, one quarter is channeled to the active liquid providers, and 0.05 is converted back to SAKE. 30% of the remainder burns and the 70% is shared among the SAKE token holders.
Another good thing is that liquidity providers within Sake Swap are allowed to get profits. When it comes to spatial arbitrage, the AMM asks for half of the slippage capacity. Consequently, the remaining half is distributed among liquidity providers. This trend expands the liquidity providers’ income.
Sake Swap has also come up with the Slippage token to act as an incentive to traders. This token is generated during trade, and it represents the traders’ contribution to maintaining AMM pool balance.
The initial phase covers yield farming. This yield farming targets liquidity providers. The default will be 100 SAKE for every block that will multiply as days go by. There is a five-day beta test farming that will be succeeded by two-week accelerated farming as a thank you to early Sake Swap entrants.
The second phase is trade mining that concerns traders. This step begins when yield farming comes to a stop. There is a default 10 SAKE for every block. The starting set of pools are Centralized Finance stable coins, Decentralized Finance stable coins, lending protocols, synthetic assets, oracles, AMM, Layer 2, rebase protocol, mining aggregator, and delicacy.
When online, SAKE holders can forward proposals to change the Sake Swap protocol. The alterations are adding new pools and even changing the SAKE weight, among others.
For the project security audit and project sustainability, a SAKE development fund is set up. About 6% of every SAKE distribution is kept for future iterations and the execution of governance proposals.
All the costs used for security audits are under the fund’s budget. Before the launch, similar bugs witnessed by both the Sushi Swap and Uniswap security audits have been rectified even though contracts linked to Sake Swap are yet to be professionally audited. Automated market maker decentralized exchanges have played an enormous role and revolutionized the decentralized finance realm. They have altered how people handle and utilize their cryptos while trading.
The birth of liquidity pools allows traders to swap in a decentralized and non-custodial manner. Through automated market makers, Uniswap stood out as the most successful decentralized project. Uniswap gave birth to Sushi Swap, which never carried out any developments in the irreversible loss.