Saddle Finance Raises $4.3M; Launches A Slippage-Free AMM for DeFi Tokens
- Saddle Finance, an automated market maker, launches a $4.3 million funding round from top VC firms in the crypto sphere.
- The platform will offer Bitcoin backed tokens, including wrapped Bitcoin (wBTC).
- DeFi AMM platform, Curve, accuses Saddle of copying its algorithm.
Saddle, a VC-backed AMM, went live earlier this week, allowing users to deposit, withdraw, swap, and provide liquidity on the platform. The project raised $4.3 million from top crypto venture capital firms, including PolyChain Capital Framework Ventures and Electric Capital. Other investors who participated in the funding round include Coinbase Ventures, Dragonfly Capital, Alameda Research, Divergence Ventures, and Nascent.
The volatility of crypto markets increases the slippage chances, difference between expected (order) price and the execution price, even across stablecoin pairs, Sunil Srivatsa, founder of Saddle and a former Uber senior software engineer, said in an interview.
Saddle is built to minimize slippage chances across different tradable assets such as stablecoins and tokenized assets. Saddle users can now choose amongst four tokenized Bitcoin liquidity pools, namely tBTC, wBTC, renBTC, and sBTC, to swap tokens or provide liquidity. Sunil further stated,
“So one of the problems that we’re setting out to solve is to unlock deep on-chain liquidity for pegged value crypto assets basically. That means you’re able to make trades and lose a very minimal amount to slippage and transaction fees.”
The platform will use Synthetix’s virtual synths, ensuring the trades are completed instantly and prevent any slippage while trading.
Curve claims Saddle copied their code
The launch of Saddle has not been taken on good terms with another AMM platform, Curve Finance, who claim the former copied their algorithm. Curve Finance is an AMM that provides stablecoin liquidity pools, different from Saddle's tokenized Bitcoin liquidity pools.
In a tweet responding to the difference the two platforms had, Curve Finance blasted the similarities in code between the platform, claiming they have “the same math.”
For now, seems like exactly the same math but with VCs. Will see how it plays out
— Curve Finance (@CurveFinance) January 19, 2021
In a statement first made public on Crypto Briefing, Curve Finance elaborated that Saddle “used the same algorithm.” Furthermore, the QuantStamp audit on the project stated they “were not able to determine how the developers derived formulas copied from Curve’s StableSwap whitepaper.”
The audit further claims that Saddle could be vulnerable to an attack previously noticed on Curve since the smart contract is typically the same.