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Community Pools

Community Pools are complementary to single-sided staking and serve as an onboarding ramp for HTS projects. These projects will have a liquid market for their token without the need to approach accredited investors and / or seek listing on centralized exchanges. This enables them to accelerate their development within the Hedera ecosystem.
There are several moving parts to Community Pools. Firstly, an HTS project must apply for an IDO through HeadStarter - a premier launchpad & accelerator of the Hedera ecosystem. This is to ensure the project has been vetted, its code is secure (which may necessitate an audit), and the developers behind said project are acting in good faith - SaucerSwap does not want to become a playground for bad actors. Next, a core proposal will be made and the community will vote on whether this project should be listed. If the proposal reaches a passing vote by quorum, the HTS project will be listed.
HTS projects voted in by the DAO will first create a liquidity pair (their token and HBAR). By initializing this LP, the project is setting the price of their token. These pools will have a minimum liquidity requirement to ensure risks inherent to the AMM (i.e., slippage and IL) are minimized.
Once this LP is created, the HTS project will create a single stake pool containing their token. This single stake pool will require the project to allocate a percentage of their token’s max supply, which will be emitted over a period of time, hence single stake pools are time-sensitive. This % token allocation and time duration are up to the discretion of the project’s development team, so they set the rate at which their token is emitted. This emission rate will determine the staking rewards of their pool. Users are incentivized to stake xSAUCE in this single-stake pool, as they will receive staking rewards in the form of the project’s token. Furthermore, xSAUCE holders can participate in multiple single stake pools simultaneously, allowing them to pull in multiple income streams (sum of APRs).
Given that multiple single-stake pools will be open at the same time, each with varying staking rewards, there will be an element of competition between HTS projects on the protocol. This will create a free market economy, which embodies the decentralized spirit of SaucerSwap, and by extension, cryptocurrencies as a whole. With this being said, certain parameters will be put in place to mitigate against negative externalities.
SaucerSwap will support a Crop Circle for the corresponding HTS project. Users who have obtained the project’s token via staking xSAUCE in the single stake pool, swapping for it in the LP, or purchasing it on secondary markets (should this apply), can exchange it - with equal value parts HBAR - for LP tokens, which can then be staked in this Crop Circle. SAUCE emissions will be used to reward users for staking in this Crop Circle. The HTS project team can swap their project’s token for HBAR in this pool, which affords them capital to accelerate development of their project. This process should come at a very low overhead, given Hedera’s low fee structure (e.g., creating, minting, and transferring their token).
SaucerSwap offers a novel model designed to grow the ecosystem, all while incentivizing members of the community to participate.