Vesper Unlocks Yield Bearing AMMs with Saddle and Vesper Earn
“Deposit FRAX, Earn FraxBP” pool enters production — a key unlocker to natively yield-bearing AMMs on Saddle.
The newest Vesper Earn pool, Frax-to-FraxBP, has entered production. This pool acts as the key unlocker to a first-of-its-kind yield-bearing AMM.
Saddle will feature a new StableSwap pool that utilizes the Vesper Earn deposit token and their existing FraxBP. Liquidity providers to this pool will passively receive yield routed through Vesper in addition to trading fees and LP boost from SDL.
How it Works
The deposit token to this Earn pool is treated as a “wrapped FRAX.” Holders (depositors or otherwise) can always deposit/withdraw 1:1 with the underlying FRAX token.
The Earn token is paired with Saddle’s FraxBP as a metapool, where users can trade USDC and FRAX from FraxBP with the Earn-wrapped FRAX. The portion of the pool represented by Vesper Earn generates yield from the underlying FRAX deposits and converts the yield to more of the FraxBP token.
Saddle is an open-source, multi-chain Automated Market Maker (AMM). Saddle differentiates itself as a “stable swap,” primarily offering market pairs across stablecoins and like-asset pairs of blue chips like ETH and WBTC. Saddle users benefit from low slippage and deep liquidity across a number of pools.