AMM DEXes have caused an evolution in the Defi world, since they are changing the way users trade their cryptocurrencies. The creation of the liquidity pool enables traders to easily swap in a fully decentralized and non-custodial way. By utilizing the innovation of AMM, Uniswap becomes one of the most successful Defi projects. And we notice that lots of projects are attempting to improve AMM design with their own implementations.
Inspired by other AMM DEXes, SakeSwap aims to improve the design of AMM in terms of price curves and contributor rewards.
50% Slippage Capture
SakeSwap is an AMM DEX which utilizes the liquidity pool to easily swap in a fully decentralized and non-custodial way for traders. SakeSwap improves the design of AMM in terms of slippage capture which can increase 50% of incomes for Liquidity Providers.
Instead of arbitrators acquiring all the slippage in other DEXes, liquidity providers in SakeSwap are enabled to capture profits otherwise captured by arbitrageurs with virtual trading curves. In the case of spatial arbitrage, the AMM collects 50 % slippage capacity from arbitrage traders. As a result, the other 50% will be shared among liquidity providers. The 50 % slippage capacity for liquidity providers can enlarge Liquidity Providers’ income to ～200 % compared to transaction fee as income.