SAUCE flows into the Infinity Pool from three revenue sources, raising the xSAUCE conversion rate.
Three revenue sources
Yield in the Infinity Pool is derived from three distinct streams:- Trading fees. The protocol’s share of V1 and V2 swap fees — and net V3 order book fees — funds SAUCE buybacks, part of which flows to the Infinity Pool.
- Farm emissions. A share of the Masterchef contract’s devcut emissions is allocated to single-sided staking rewards; see SAUCE tokenomics for the emission schedule.
- HBAR native staking rewards. HBAR is not an HTS token, so a smart contract wraps it into WHBAR for use on SaucerSwap. The WHBAR contract’s HBAR balance is proxy-staked to a Hedera network node. It held 195,071,535.78464572 HBAR when checked July 29, 2026; verify the live balance on HashScan or the Mirror Node account response rather than relying on the snapshot. Hedera native staking has no slashing and no lock-up, so the balance stays fully available. Accrued HBAR rewards are swapped into SAUCE via a daily buyback.
Worked example
1
First staker sets the 1:1 baseline
User A is the first participant. They deposit 10 SAUCE and receive 10 xSAUCE — the initial 1:1 ratio.
2
Revenue raises the rate
10 SAUCE of protocol revenue (fees, HBAR staking rewards, emissions) is added to the pool. The pool now holds 20 SAUCE against 10 xSAUCE, so the rate is 1 xSAUCE = 2 SAUCE. User A could now redeem their 10 xSAUCE for 20 SAUCE.
3
New stakers enter at the current rate
User B deposits 10 SAUCE. At the 1:2 rate they receive 5 xSAUCE. The pool holds 30 SAUCE against 15 xSAUCE — the rate is unchanged. New stakers never dilute existing ones.
4
The rate keeps compounding
As more SAUCE revenue arrives, every xSAUCE is redeemable for progressively more SAUCE. Rewards accrue in the rate itself; there is nothing to claim.
Calculating APR
The staking APR shown in the app is derived from the growth of the conversion rate: where is the SAUCE/xSAUCE exchange rate, and and are the rates at the start and end of a one-day window. The rate updates once per day, so hours. Because revenue varies day to day, displayed APR fluctuates; the stake page shows the averaging window it uses.Next steps
Stake SAUCE
Walk through staking on the stake page, including staking straight from HBAR.
V3 fee discounts
How xSAUCE lowers your order book trading fees.
Governance
Use SAUCE and xSAUCE voting power in the DAO.
SAUCE tokenomics
The emission and buyback flows feeding the Infinity Pool.