Is SaucerSwap V1 Safe?

|DEX
B-

Risk Grade: B- (30/100)

SaucerSwap V1 is rated as moderate risk — some novel mechanisms, generally well-understood.

Moderate risk — a well-understood AMM design on Hedera's dominant DEX, but significant TVL decline and ecosystem dependency create long-term sustainability concerns.

SaucerSwap V1 is the foundational version of Hedera's leading DEX, using a Uniswap V2-style AMM adapted for Hedera's native token service. With ~$14M in TVL (down from $120M peak), it charges a 0.3% swap fee split between LPs and the protocol. The B risk grade reflects its straightforward, battle-tested AMM design and good documentation, balanced against Hedera ecosystem contraction and declining TVL.

TVL

$13M

Mechanisms

5

Interactions

4

Value Grade

D+

Key Risks for SaucerSwap V1 Users

1.

SaucerSwap's trading activity depends on Hedera's ecosystem growth — if Hedera fails to attract more users, trading volume and your LP returns will continue declining

2.

V1 uses the older Uniswap V2 design which is less capital-efficient — as the protocol shifts focus to V2, V1 pools may become too thin for good trade execution

3.

The SAUCE governance token powers LP incentives, but if SAUCE price drops, the dollar value of your farming rewards decreases

Top Risk Factors

  • Hedera ecosystem has limited DeFi depth — SaucerSwap V1 liquidity depends on Hedera chain adoption, which trails major L1 ecosystems
  • V1 uses legacy Uniswap V2 AMM design with lower capital efficiency — LPs face full-range impermanent loss on volatile HBAR pairs
  • TVL has declined significantly from $120M peak to ~$14M, reflecting broader Hedera ecosystem contraction

Risk Score Breakdown

SaucerSwap V1's highest risk area is Track Record (12/15). Here's how each dimension contributes to the overall 30/100 score:

Mechanism Novelty0/15
Interaction Severity2/20
Oracle Surface0/10
Documentation Gaps2/10
Track Record12/15
Scale Exposure3/10
Regulatory Risk4/10
Vitality Risk7/10

Read the Full SaucerSwap V1 Risk Report

This protocol has 2 collapse scenarios. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.