The Blockchain Cafe - Your Guide to Decentralized Finance and Cryptocurrency
No Result
View All Result
Saturday, June 10, 2023
  • Login
  • News Story
  • Blockchain
  • Cryptocurrency
    • Exchanges
  • NFT
  • Metaverse
  • DAO
  • Listicle
Subscribe
The Blockchain Cafe - Your Guide to Decentralized Finance and Cryptocurrency
  • News Story
  • Blockchain
  • Cryptocurrency
    • Exchanges
  • NFT
  • Metaverse
  • DAO
  • Listicle
No Result
View All Result
The Blockchain Cafe - Your Guide to Decentralized Finance and Cryptocurrency
No Result
View All Result
ADVERTISEMENT
Home Exchanges

SushiSwap far from profitable – Jared Gray announces tokenomics overhaul

by Ashutosh Thakur
December 13, 2022
in Exchanges
132
0
SushiSwap far from profitable – Jared Gray announces tokenomics overhaul
153
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

RelatedPosts

Coinbase: the United States tax authorities (IRS) can access customer data

Uniswap DAO Rejects Proposal to Introduce Protocol Fee

Arbitrum: 4,000 ETH flown on the Jimbos protocol in a hack

SUSHI that lacks freshness – SushiSwap is one of the iconic decentralized exchange platforms of the DeFi. Just over two years after its launch, it is facing major cash flow problems. Faced with this, the protocol leader announced his desire to reform the protocol.

SushiSwap soon out of business?

Last week, Jared Greythe new CEO of SushiSwap, announced bad news for the protocol. Indeed, the Treasury which supports the development de SushiSwap keeps getting smaller.

Despite a drastic reduction in annual expenditure, the protocol would have approximatelya year and a half of reserve. After this period, the coffers will be empty and the protocol will no longer have the means to support its development.

Nevertheless, Gray and his teams do not want to come to this. Thus, the latter proposed to the community to hijack a part costs generated by the protocol to cash funds. Obviously, this maneuver will come at the expense of SUSHI token stakers and other liquidity providers.

Jared Gray wants to save SushiSwap from bankruptcy more than ever

>> You don’t trust the platforms to keep your cryptos? Ledger has the solution (commercial link) <<

Jared Gray backs up his words

Unsurprisingly, the announcement of the modification of the Kanpai parameter in favor of treasury did not not to everyone’s taste.

A bit of context

This is why Jared Gray published a thread on Sunday December 11 to come back to this proposal and provide more context:

“I would like to revisit the discussions regarding the Kanpai proposal and highlight the upcoming improvements in tokenomics. I want to focus on the key drivers of Sushi’s business model and how we plan to improve it in the first quarter of 2023.”

Thread de Jared Grey
Thread de Jared Grey – Source : Twitter

Before going into the details of future developments, Jared Gray reviews the current and past situation of SushiSwap. The latter explains that the protocol has lost environ 30 million dollars during last 12 months. This loss comes from the rewards strategy based on the issuance of new tokens; strategy aimed at attracting cash.

Unfortunately, in practice, this has not been effective. As explained by Grey, the protocol spent more on transmit than the swap volume generated in fees:

“We expected emissions-based rewards to incur some loss to seed liquidity, but this rate is unsustainable. »

Future developments

To solve this problem, the SushiSwap protocol will have to reinvent itself. With this in mind, Jared Gray announces that the next project will focus on a tokenomics review of the SUSHI token. Its objective will be to emphasize several points:

  • Restore value to the SUSHI token;
  • Increase the TVL of the protocol;
  • Focus on liquidity providers.

“Ultimately, we need to harden the business model to produce more swap volumes and generate more fees. »

Concretely, the new tokenomics should allow liquidity providers to rreap the majority of the profits, without having to rely on issuing new SUSHI tokens. Indeed, profitability will drive more liquidity providers to offer their funds.

At the same time, Jared Gray also wishes restructure the business model of the DEX by modifying several mechanics. Nevertheless, he wishes to remain opaque on this point until the approach of his deployment.

“This realignment of value on multiple fronts will bring capital efficiency to the DEX, making it more competitive in capturing market share from competitors. Governance is essential to tokenomics, and creating more equitable outcomes is paramount to the success of a DAO, like Sushi. »

Jared Grey

All of these developments should be deployed throughout the first quarter of 2023.

Among the direct competitors from SushiSwap, we find the giant Uniswap. This one does not intend to let himself be so easily overtaken. In effect, Uniswap continues to innovate, in particular through the recent launch of an NFT exchange platform.

In crypto, do not economize on caution! So, to keep your crypto assets safe, the best solution is still a personal hardware wallet. At Ledger, there is something for all profiles and all cryptos. Do not wait to put your capital in safety (commercial link)!

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe

Related Posts

Coinbase: the United States tax authorities (IRS) can access customer data
Exchanges

Coinbase: the United States tax authorities (IRS) can access customer data

June 3, 2023
1.9k
Uniswap DAO Rejects Proposal to Introduce Protocol Fee
Exchanges

Uniswap DAO Rejects Proposal to Introduce Protocol Fee

June 2, 2023
1.9k
Arbitrum: 4,000 ETH flown on the Jimbos protocol in a hack
Exchanges

Arbitrum: 4,000 ETH flown on the Jimbos protocol in a hack

May 29, 2023
1.9k
Anti-Bitcoin war in the USA: Gemini confirms its desire for Europe
Exchanges

Anti-Bitcoin war in the USA: Gemini confirms its desire for Europe

May 27, 2023
1.9k
Chaos on Multichain: the Fantom Foundation explains its massive withdrawal
Exchanges

Chaos on Multichain: the Fantom Foundation explains its massive withdrawal

May 26, 2023
1.9k
Europe and crypto regulation: OKX wants to settle in France
Exchanges

Europe and crypto regulation: OKX wants to settle in France

May 23, 2023
1.9k
Load More
  • Trending
  • Comments
  • Latest
-The Blockchain Cafe

Write for us – guest post

April 14, 2022
Important Update On The Celsius Network

Important Update On The Celsius Network

June 14, 2022
TCS-The Blockchain Cafe

TCS roll-outs Quartz DevKit to help businesses build blockchain applications 40% faster

December 4, 2021
Quorums and Quorum Slices -The Blockchain Cafe

What Are Quorums and Quorum Slices?

December 4, 2021
OneCoin: the $4 billion Ponzi back in court

OneCoin: the $4 billion Ponzi back in court

0
The Blockchain Cafe

10 Things A Crypto Beginner Should Know

0
Binance Launches Training Program for Government Agencies

Binance Launches Training Program for Government Agencies

0
NFT games only scratch the surface of possibilities according to Animoca’s Yat Siu

NFT games only scratch the surface of possibilities according to Animoca’s Yat Siu

0
Altcoins: Is Binance Coin (BNB) in danger from SEC attack?

Altcoins: Is Binance Coin (BNB) in danger from SEC attack?

June 9, 2023
On the issue of Bitcoin (BTC) supply

On the issue of Bitcoin (BTC) supply

June 8, 2023
Bali wants to crack down on crypto-payments

Bali wants to crack down on crypto-payments

June 7, 2023
Binance under dark clouds

Binance under dark clouds

June 7, 2023
The Blockchain Cafe - Your Guide to Decentralized Finance and Cryptocurrency

© 2022 The Blockchain Cafe - Designed and Maintenance by The Blockchain Cafe.

Navigate Site

  • News Story
  • Blockchain
  • Cryptocurrency
  • NFT
  • Metaverse
  • DAO
  • Listicle

Follow Us

No Result
View All Result
  • News Story
  • Blockchain
  • Cryptocurrency
    • Exchanges
  • NFT
  • Metaverse
  • DAO
  • Listicle

© 2022 The Blockchain Cafe - Designed and Maintenance by The Blockchain Cafe.

Welcome Back!

Sign In with Linked In
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version
x
x