SaucerSwap V1
SaucerSwap is an automated market maker on Hedera, built on the Hedera Smart Contract Service with its token service integrated. V1 remains live but is now the legacy venue; SaucerSwap recommends V2 for new liquidity. V1 LPs deposit a 50:50 pair into the full-range constant-product curve and receive fees as swaps alter their inventory. The resulting impermanent-loss exposure makes the version-1 amm-lp dossier decisive regardless of the approximately $7.80M TVL observed on 2026-08-15.
- Ships a product line without impermanent-loss exposure that merits its own review
Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.
The research file
Mechanism applicability
SaucerSwap V1 is a Uniswap-v2-derived constant-product AMM adapted to Hedera services. Each position deposits two tokens at a 50:50 value split across the full price range, receives an LP token and earns five-sixths of the 30-basis-point swap fee. Arbitrage and trader flow change the reserves held for the LP, directly matching the amm-lp dossier.
Current observation and lifecycle
Observed 2026-08-15: DefiLlama reported approximately $7.80M in SaucerSwap V1 TVL, all on Hedera, and the official pool interface still listed V1 liquidity. The documentation now calls V1 the legacy AMM and recommends V2 for new positions, but still documents live V1 pools, fee claiming and farming. This is a live legacy product, not an archive.
Control, loss and exit applicability
LPs choose when to add or remove liquidity, but cannot control the inventory mix returned after swaps. The official example says an incorrect pool price is arbitraged at the LP’s expense, and the FAQ identifies divergence loss explicitly. Removing liquidity realizes the current reserve mix and claims accrued fees; optional Masterchef staking adds reward weight and contract dependencies without removing the market-making loss path.
Why the class rule decides
Hedera settlement, governance and V1 legacy status are relevant operating facts, but the client claim under review is still paired AMM inventory. Fees and emissions compensate risk rather than eliminate underperformance versus holding the assets. The shared v1 amm-lp dossier therefore controls. Reopen only for a distinct SaucerSwap product whose return does not require paired or synthetic market-making inventory.
Class rule
The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.
Sources
The claims above trace to these. Where a number could not be independently verified, the thesis says so.
- SaucerSwap — V1 constant-product mechanics and lifecycle · primary · accessed 2026-08-15
Supports: legacy V1, constant product, 50:50 pair, swap fees, LP token, arbitrage - SaucerSwap — liquidity and impermanent-loss FAQ · primary · accessed 2026-08-15
Supports: impermanent loss, remove liquidity, claim V1 fees, Hedera token association - SaucerSwap — live Hedera V1 pool interface · primary · accessed 2026-08-15
Supports: live lifecycle, Hedera, V1 pools, liquidity provision - SaucerSwap — governance and V1 incentives · primary · accessed 2026-08-15
Supports: V1 farm weights, Masterchef emissions, DAO controls, protocol fees - DefiLlama — SaucerSwap V1 survey record · secondary · accessed 2026-08-15
Supports: current TVL, Hedera perimeter, Dexs category, survey observation
Inherited controls
The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.
| Chain | Verdict | Control | Control constraint |
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