Saber LP tokens - Asset Onboarding Application

[Asset Onboarding Application] - Saber LP

Interested Party Profile

Party submitting application: Saber
Website: saber.so
Contact: alex@saber.so
Submission Date: 5/10/2022
If endorsed by Jet Community Member, list here:

Application Profile

1. What is your motivation for submitting this application?

Saber wishes to submit this application so that Saber LPs can be deposited into Jet Protocol as collateral. Saber LPs are a stable way to achieve yield, as the underlying assets are either stable or wrapped pairs (USDC-USDT).

2. What is your association to the proposed asset?

Saber is the issuer of Saber LPs.

3. What are the key benefits to the Jet Protocol for onboarding the asset?

Saber LPs are held to the tune of hundreds of millions of dollars, but at the moment, the only place for them to be staked is in Quarry.so. Jet could onboard Saber LPs to increase TVL and help their users achieve new forms of diversified yield.

4. What are the known limitations of the asset?

If the underlying tokens in the pair suffer a depeg or wild market fluctuations, (UST-USDC) for example, this can eliminate the value of the LP.

Project Profile

1. Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).

Saber is a stableswap AMM and DEX ontop of the Solana ecosystem. Saber functions as a liquidity market.

2. Who are the founding members? What is their current involvement with the project?

Ian and Dylan Macalinao. Ian is the lead engineer and Dylan is in charge of product.

3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).

Saber raised $7.7 million in a seeding fund round in July 2021.

4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?

Unclear.

5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?

Saber has a release schedule that can be found here: Introducing SBR — the Saber Protocol Token | by Saber Labs | Saber

6. What is the current token distribution (project team vs. investors vs. public)?

Has the token distribution changed over time? Please see here: Introducing SBR — the Saber Protocol Token | by Saber Labs | Saber

7. Are there any fees generated by the protocol? If yes, please provide details and amounts.

Fees have been changed to 0 on swaps, but the only fee charged to LPs is a .5% withdrawal fee on USDC / USDT - for discussion of this by Dylan see Discord

8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.

Bramah systems has performed an audit and a public one is linked here Discord. There are Solana Labs core devs in all private repos.

9. Other relevant project data or comments:

Asset Profile

1. Asset name:

Saber USDC-USDT, UXD-USDC, USDC-UST, USDH-USDC

2. Asset type (native/ wrapped):

Native

3. One-sentence description of the asset:

Saber Liquidity Provider (LP) token

4. What’s the purpose of the asset within its native ecosystem?

This is a token that is given as a representation of a liquidity providers underlying contribution to a liquidity pool on Saber.

5. Does the asset have any use outside of its native ecosystem (integrated protocols)?

We are working on integrating Saber LPs across the Solana ecosystem.

6. Smart Contract address:

Saber UXD-USDC LP (UXDgmqLd1roNYkC4TmJzok61qcM9oKs5foDADiFoCiJ)
Saber USDT-USDC LP (2poo1w1DL6yd2WNTCnNTzDqkC6MBXq7axo77P16yrBuf)

Saber wUST-USDC LP (USTCmQpbUGj5iTsXdnTYHZupY1QpftDZhLokSVk6UWi)
Saber USDH-USDC LP (HUBBGekfLpdZhZcqjLeecLVz39o1ysDkicZpgMgZgPFS)

Asset Liquidity

1. What exchange(s) support the asset?

None

2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?

No

3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).

None

4. Which oracles monitor the asset? How many feeds are available?

Switchboard (is my understanding)

5. How often does the asset drop significantly in price?

Never

6. For stablecoins only: Has the asset ever lost the peg? If yes, for what reason?

UST (yes), Luna crash (5/9/2022)

7. For wrapped assets only: Which bridges are used? Are they custodial or non-custodial? Are they audited?

Allbridge and Wormhole. Non-custodial. Yes.

8. What amount of asset’s liquidity exists in the integrated protocols (if applicable)?

N/A

9. List any parties interested in taking part in liquidations for the proposed asset type.

N/A

Key Mechanics

1. How many active addresses/ users currently hold the asset?

Varies by LP, but most LPs are concentrated in the hands of a small number of large LPs.

2. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?

N/A

3. Please explain the staking mechanism (if any).

At the moment, LPs can be staked into Quarry for yield as a part of the ongoing Saber Wars.

4. Please explain the slashing mechanism (if any).

None

5. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?

None

6. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?

No

Legal Profile

1. Is the project or the asset owned by any incorporated organization?

(Please have the Jet team reach out to Dylan Macalinao for more information).

2. In which jurisdictions was the token issued?

(Please have the Jet team reach out to Dylan Macalinao for more information).

3. Was the token issued as part of regulatory process (e.g. securities offering)?

(Please have the Jet team reach out to Dylan Macalinao for more information).

4. Was the token issued as part of fundraising process?

(Please have the Jet team reach out to Dylan Macalinao for more information).

5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.

(Please have the Jet team reach out to Dylan Macalinao for more information).

6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.

(Please have the Jet team reach out to Dylan Macalinao for more information).

Links

Link to project’s white paper:

Link(s) to active communities related to the project:

Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:

Link(s) to audits - both procedural and Smart Contracts:

Link(s) to legal opinions:

  • N/A

Link(s) to other legal material:

  • N/A

Other relevant links:

List all relevant Solana addresses here:

  • Ask Dylan Macalinao
3 Likes

Thank you for submitting Alex! Let the Saber asset onboarding process begin!

2 Likes

Hey @alexcoffmansaber !

Thanks for contributing to the Jet Protocol. We have modified the format your application a bit to be markdown compatible (it’s more readable now).

While doing it, we’ve noticed that some of the information is missing. We’ll try to see if we can proceed with what we have and get back to you.

Especially for the legal section: what’s the best way to reach Dylan Macalinao?

1 Like

Hi! Thanks for that.

Dylan@saber.so is probably the best way, but cc me at alex@saber.so as well so we both get it.

Thanks!

How exactly does SBR onboarding to JET provides value to JET? So far your proposal feels like you want to do “something” instead of doing something meaningful for your protocol holders. Again, how does this provide value to JET?

A lot of information on legal profile is redacted, why is that? No one wants to send an email. Be transparent.

2 Likes

Hey ezio

Appreciate the input and question(s) in the Jet Forum!

Re: Legal Profile

We are coordinating w Saber team on updating their Asset Onboarding Application to mirror the standard set by this USDC application created by a Jet core team member.

We will update when they are ready to share

  • alexis
1 Like

Saber is the leading liquidity market & cross-chain stableswap protocol on solana. Having saber LP tokens as a collateral on jet protocol will enable flexibility and efficient use of saber LP tokens across lending protocols. this is going to be a mutual benefits for the protocols by driving more liquidity to saber and onboarding more users to jet lending app.

1 Like

Would be careful adding any LP tokens representing assets not yet on-boarded on JET directly (obvious example UST). Especially true given the current shared liquidity pool on JET, should prioritize adding less risk-prone assets first.

1 Like

Hi @alexcoffmansaber, thanks for the application! I’m curious about the potential price dynamics of, say, USDT-USDC LP, as the balance of those tokens within the pool varies.

Let’s imagine the pool starts at 50:50 ratio of assets and trades (under normal supply and demand; assume no dramatic events like breaking peg), to almost 100% USDC through to 100% USDT, and then back to 50:50. Can you talk about the value of an LP token along this path?

Some reflections:
It was meaningful to add LP tokens to protocols as they earned yield from fees. At this very moment, with ~0 fees, I do not see the benefit for Jet users. However, there are pros with this proposal: partnership with a big protocol - increasing trust and visibility.
Also, the swap fees can change in an instant so when they do raise fees I’ll be even more supportive of adding Saber LPs - such as USDC-USDT

1 Like