Saddle - An automated market maker optimized for pegged value crypto assets

Saddle is an automated market maker (AMM) designed to enable efficient trading between pegged value crypto assets. Saddle is launching with a tokenized bitcoin pool, allowing users to trade between and provide liquidity for tBTC, WBTC, sBTC, and renBTC.

Saddle recently spun out of Thesis, the crypto venture studio behind projects like tBTC, Keep, and Fold.

What are pegged value crypto assets?

Pegged value crypto assets are tokens that have their value pegged to an underlying asset by some means. For example, the value of a stablecoin or tokenized bitcoin is supposed to be $1 or 1 BTC, respectively.

However, pegged value crypto assets fix this value using different mechanisms. Some assets, like Synthetix sBTC or sUSD, maintain their peg synthetically (in this case, via collateralization of SNX). Other assets maintain their peg by being backed by and redeemable for the actual underlying asset, either permissionlessly (e.g. tBTC) or through a centralized custodian (e.g. WBTC, USDC).

These different approaches and the associated risks are why the prices of pegged value crypto assets of the same type can vary slightly.

What’s the issue with pegged value crypto assets?

Trading among and in between these types of assets can be expensive and inefficient, resulting in lost capital due to high slippage and transaction fees.

Saddle solves the pegged value crypto asset trading problem by offering an AMM specifically tailored to allow users to trade in between these assets with minimal slippage.

Read more:

Medium: Saddle – Medium
Github: Saddle Finance · GitHub
Telegram: Contact @saddle_finance