How SaucerSwap works

SaucerSwap is a decentralized exchange on the Hedera network. It combines three trading venues — the V1 constant-product AMM, the V2 concentrated-liquidity AMM, and the V3 order book — with a shared token economy built around SAUCE. Every venue feeds protocol fees into SAUCE buybacks, and the SaucerSwap DAO steers how emissions and treasury flows are allocated.

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Tokens on Hedera

SaucerSwap supports Hedera Token Service (HTS) tokens and supported ERC-20 assets. HTS tokens require token association before your account can hold them; ERC-20 tokens use a different allowance model. HBAR is the network’s native currency, with WHBAR used where a contract requires a token representation. Check the market’s token identifiers and see ERC-20 tokens and wrapping before choosing a token version.

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Three trading venues

When you swap in the web app, routing compares the best V1/V2 AMM quote with an eligible V3 order-book quote and selects one venue for your trade. On the separate trade page, you can place and manage V3 orders; eligible orders can also use AMM-backed settlement.

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Fees and buybacks

AMM swaps incur a percentage fee. V3 applies market- and account-specific fees to fills, with eligible makers receiving rebates funded by taker fees. Most of each AMM fee goes to liquidity providers, while protocol fee-switch revenue and net V3 fees fund SAUCE buybacks through BrewSaucer. Unified BrewSaucer routes purchased SAUCE consistently across eligible revenue sources: 40% to xSAUCE, 30% to development, 10% to burn, and 20% to protocol-owned liquidity and incentives. See SAUCE tokenomics for the full allocation.

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Liquidity incentives

The Masterchef contract mints base rewards at 1.056992 SAUCE/sec under the Phase 1 allocation, a 50% reduction from the previous rate:

• V1 yield farm — LP token stakers earn SAUCE (and, when enabled, HBAR) according to farm weights set by governance.
• V2 LARI — the Liquidity-Aligned Reward Initiative rewards V2 positions automatically each two-week epoch, weighted by in-range liquidity. See LARI weights.

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Single-sided staking

Staking SAUCE in the Infinity Pool issues xSAUCE, a receipt token whose SAUCE conversion rate rises over time as its share of revenue-funded SAUCE buybacks compounds into the pool. xSAUCE also carries voting power and unlocks V3 fee discounts. See Single-sided staking.

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Governance

SAUCE and xSAUCE holders govern the protocol through token-weighted, on-chain voting: proposals start as a Request for Comment on the governance forum, then advance through Proposal and Election votes on the web app’s govern page. The DAO controls farm weights, LARI campaigns, pool creation, tokenomics changes, and treasury flows. See Governance.

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