This is a guide on how to buy SAKE from Sakeswap, the newest Automated Market Maker (AMM) on the block with an extensive initial farming period to distribute the SAKE token to yield farmers and the broader community.
The idea behind SAKE is very similar to SUSHI – as you might have guessed, with the success of SUSHI, a lot of clones are coming into the market that promise something similar or a better version of the AMM on their Decentralized Exchange (DEX).
The SAKE team, based out of Asia, is promising an AMM with better fee capture for liquidity providers (LPs) on their exchange. The design follows in the footsteps of Mooniswap from 1inch team which was the first to implement this design and help capture more of the value to LPs away from the arbitragers who trade on these exchanges. This means for the same trading volume, you will earn a higher LP fees on Sakeswap than Sushiswap, all else being equal.
The Sakeswap team is yet to launch their AMM, but the idea would be similar to Sushiswap in that they would migrate the LP tokens to their new exchange. This is a risky endeavor. Yield farmers should make sure they are aware of these risks and unstake their LP tokens before migration if they are unsure of the risks.
How to Buy SAKE
Currently, the best place to buy SAKE is from Uniswap. Uniswap has the highest liquidity pool for SAKE. However, ultimately how you buy SAKE depends on which currency you are starting with.
Follow this guide to make sure you get the best price when buying SAKE:
- If you already have ETH in your Web3 wallet like MetaMask, simply go to Uniswap and convert your ETH to SAKE.
- If you want to start with a non-ETH token like LINK, SNX, LEND, YFI, etc. and convert that to SAKE, make sure to go to 1inch first and convert this token into ETH (you’ll get the best price execution there), then follow the step above for Uniswap. If in the future 1inch team integrates SAKE natively, you do not need to do the above step at all, i.e. you can execute everything from 1inch itself.
- If you are starting from BTC or a non-ETH token, first go to Binance, convert this into ETH, then follow the first step (Uniswap).
- If you are starting from fiat, first go to Coinbase, buy ETH and then follow the first step (Uniswap)
How to Farm SAKE
In the first few weeks since launch, you can simply farm SAKE instead of buying it from an exchange. This will help you earn SAKE without spending ETH.
Note that as with most yield farming, the SAKE-ETH pool has the highest rewards but also the riskiest due to impermanent loss. Make sure you understand this before farming in this pool. If you want to, then you can first buy SAKE based on the guide in the previous section, and then become a liquidity provider in this pool.
The image below shows all the pools that are available.
SAKE farm has many exchange pairs as you can see above. This reduces APY for farmers, but gives them more options. If you are farming SAKE, make sure you compare the yields to SUSHI as well for highest profitability.
One interesting thing with SAKE farming is that they started with a shorter 5 day “beta” period where the rewards were 0.5x. However, after this period, the rewards will go 10x so that is a drastic increase in APY and returns.
If you want to farm SAKE, keep an eye out on any changes in the pools over time. You can join their Discord for that.