Tran Cong
by on October 15, 2020
History of Sushiswap
In the two years since its launch, Uniswap has solidified its position as one of DeFi's main pillars. With that, UniSwap's protocol design has become a standard in Defi. Many later projects were born from its mechanism.
Along with that, SushiSwap has been designed as an inheritance and development step in the design of the Uniswap protocol, which can be called an "evolution". Taking Uniswap's core design at its core, SushiSwap has added community-oriented features that the founders believe will help improve the protocol's old design and further benefit stakeholders. I believe this site can give you more knowledge: bitcoin exchange
Sushi protocol design
Provides liquidity incentives Right now, one of the questions that come to mind can be asked: "Why do people want to provide liquidity for SushiSwap and not Uniswap?". Well, for Uniswap, liquidity providers earn only the transaction fees of pools. Once they have withdrawn their stake, they will no longer receive that passive income. Furthermore, when the protocol achieves large transaction volume, even though being a liquidity provider comes sooner they still run the risk of being distributable to stakeholders (larger and contributing more capital) wallets. for example, venture funds, exchanges, mining groups ... join the protocol with a huge amount of capital.
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As for SushiSwap, one can also provide liquidity and then earn rewards in the form of SUSHI tokens. However, it is not the same as Uniswap. Those SUSHI tokens will also allow you to continue earning a portion of the fees for the above protocol. This reward will accumulate in SUSHI even if you decide not to participate in the liquidity offer anymore. Next, if you are someone who comes earlier to help the liquidity provider, you will become an important partner of the protocol.
The income you get from wagering will be directly proportional to the amount of LP tokens you bet against the total number of LP tokens everyone has bet on. So, unless you continue to provide liquidity, your respective holdings and bonus earnings will gradually decrease as the number of LP tokens used to bet increases. Token distribution Currently, many of us are liquidity providers in Uniswap groups. So Sushi designed the token distribution mechanism to make it as easy as possible for the current liquidity providers Uniswap to start moving to its protocol.
To begin providing liquidity and owning SUSHI tokens, anyone holding Uniswap LP tokens can initially stake those LP tokens on the respective pooling list. Once completed, they will begin to own tokens after the first spawn reward on block 10750000. The list of eligible LP tokens can be added depending on the on-chain governance. So each of us is making a decision.
For each block, 100 SUSHI tokens will be generated. These tokens will be distributed evenly among distributors of each supported pool.
However, for the first 100,000 blocks (around the first 2 weeks), the amount of SUSHI tokens generated will be 10 times, resulting in 1000 SUSHI tokens being minted per block. This is to encourage early farmers and protocol adopters, with help in moving liquidity ️.
Groups available initially:
CeFi Stablecoins: USDT-ETH, USDC-ETH
Defi Stablecoins: DAI-ETH, sUSD-ETH
Loan Protocols: COMP-ETH, LEND-ETH
General assets: SNX-ETH, UMA-ETH
Ponzinomics: AMPL-ETH, YFI-ETH
Delicacy (double reward): SUSHI-ETH
Particularly, SUSHI / WETH receive double the amount, so make sure to provide your SUSHI to qualify for the WETH bonus. Once SUSHI is active, the community can vote to get more qualifying groups or change the amount of SUSHI for any group. You are the decider
Reward distribution
With the existing Uniswap configuration available, 0.3% of all transaction fees in any given pool are appropriately allocated to the liquidity providers of the groups. In SushiSwap, 0.25% is passed directly to active liquidity providers, while the remaining 0.05% is converted back to SUSHI (through SushiSwap) and it is distributed to owners. token SUSHI.
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