SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?

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The Onsen incentive plan expands the four incentive pools to more than a dozen, including small market value and medium market value projects.

Original title: ” New DeFi gameplay丨Sushi is going to become the Binance of the DEX world? Learn about grassroots-driven innovation-hot spring plan
Written by: DeFiPulse
Compile: Screen

Earlier, crypto investor Arthur_0x tweeted that Sushiswap will eventually become the Binance of DEX and Uniswap will become the Coinbase of DEX. Both will succeed. The former will be driven by grassroots, and the latter will be driven from top to bottom. .

Let’s review the story of Sushi’s barbaric growth: 2020 has witnessed a big run of DeFi, and SushiSwap is a big black horse in the run. Before Uniswap launched UNI, SushiSwap took the lead in launching governance tokens and launched the first DeFi “vampire attack”, that is, Uniswap’s liquidity migration. This made SushiSwap a lot of attention. However, things took a turn for the worse in September. Chef Nomi, the anonymous founder, drew a large amount of SUSHI tokens from the fund library. The chef eventually returned about 14 million US dollars worth of ETH, but it has already caused a lot of trouble to SushiSwap Big negative impact.

After half a year, it is no longer the farce-ridden Sushiswap at that time, and then the story of rebirth. Chef Nomi left and the project was handed over to the community and the new lead developer 0xMaki. Since then, the SushiSwap team has cleared out old accounts, got rid of the shadow of Uniswap, and went out of its own way: it formed an alliance with Year and became the internal automatic market maker (AMM) of the revenue aggregation agreement; released the Onsen and BentoBox plans, and the BentoBox lending market allowed investors Shorting and longing a large number of assets in a decentralized manner, the launch of SushiSwap v2 in the next few months is also worth looking forward to.

Today, Sushiswap’s asset lock-up volume is about 1.75 billion U.S. dollars, and the most recent daily trading volume has reached 590 million U.S. dollars.

SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?Data source: DeBank

Overall, in terms of user volume, Sushiswap’s user volume has increased steadily since its launch, and the increase has increased significantly since late December, with cumulative users exceeding 45,000.

SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?Sushiswap user volume, data source: Dune Analytics

From the perspective of active users and the number of transactions, Sushiswap’s transaction volume is close to 60% of Uniswap’s, while active users are only 7%, indicating that Sushiswap is mostly large-scale transactions, while Uniswap prefers retail transactions. Grassroots-driven, it should be bottom-up, with a broad user base, and Sushiswap is currently a centralized large-scale transaction. Does this contradict Arthur0x’s view?

SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?Data source: DeBank

In fact, he came to this point for the Onsen (hot spring) project launched by Sushiswap. Let’s take a look at Sushiswap’s new Onsen gameplay in detail.

Maybe you have heard of SushiSwap’s “Menu of the Week”, which is the previous liquid mining activity. On December 24th, Sushiswap derived a new and interesting liquidity incentive plan from Menu of the Week-Onsen. In short, Onsen is a P “rotational rewards system” that cooperates with the Sushiswap community to determine which DeFi transaction pairs should receive SUSHI rewards through voting . What is really interesting about Onsen is the range of rewards it involves.

SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?Source: Sushiswap

For example, Uniswap only motivated 4 pools in the initial UNI rewards event, while Onsen motivated dozens of trading pairs, including small market value and medium market value projects. Onsen plans to pave the way for Sushiswap to become the premier trading venue for DeFi long-tail assets. This is what Arthur0x’s point of view is to express. Taking hot springs as a starting point, can Sushiswap create long-tail prosperity in the future, whether it is decentralized governance, or the expansion and decentralization of users, it will have a better performance? let us wait and see. To extend it, contact the past few Uniswap proposals that were not approved by voting. Do you have doubts about the rationality of decentralized governance initiated by institution-led projects?

SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?

Back to Sushiswap, if you are interested in this hot spring, you can follow the steps below:

  • Enter the Onsen panel of Sushiswap
  • Determine a trading pair you want to provide liquidity, there are many options
  • Select the pool and connect to your wallet on the following page
  • Enter the amount of liquidity you want to provide and initiate a deposit transaction

SushiSwap launched a new liquidity incentive program, can it create long-tail prosperity?Source: Sushiswap

  • Once your deposit is confirmed, take your SushiSwap LP token and pledge it on the same liquidity panel.

After the operation is completed, you can accumulate SUSHI rewards through Onsen. Currently, Onsen provides some pools with APY reaching 300%+. Note that Onsen is still being audited, so you need to participate carefully. At the same time, remember the risk of impermanent loss faced by LP.

Source link: yieldfarmer.substack.com