What is the S Token in relation to the SakeSwap protocol, and why it is very important to trade mining?

Let me explain a little about the S Token. To date, all of the yield farming on various swap platforms is not incentivised according to the liquidity contribution.

For example, a developer has set up a sake/sushi pair pool on Uniswap, this pool has had no transactions in the past 3 days, however this pool can still can get the reward according to the farming protocol.

Why is this? it is because the yield farming reward distribution is not based on the number of actual pool transactions but the pair staking contribution.

Here we can see the normal trading behaviour in a DEX, for example User A uses ETH to swap for Sake on Uniswap, in doing so, the User contributes his transaction volume to the ETH-SAKE pair pool.

So how about we incentivise using the Sake AMM ecosystem?

May we introduce to you the S Token to reward our Users trading activities — allowing traders to then deposit their S Token in the Sake AMM to further mine SAKE token as a reward.

We believe the S Token is the key to mining via trading.

Probably the most important advance in this development is how the S Token can help SakeSwap open sake AMM/yield farming protocol to all the third parties. It will be “AMM/yield farming as service”; third parties can get Sake reward according to the transactions executed and tracked via the S Token, meaning a third party can focus their farming reward distribution to their customer and use the SakeSwap smart contract as a farming/AMM pair pool host service.

There will be no need for contract migration or any future audits