Uniswap opponent Sushiswap hit $30 million in daily volume as it offers incentives for those that are contributing to the liquidity pool in the form of the SUSHI tokens as we are reading further in our blockchain news.
Uniswap hit its highest daily trading over $450 million as well which was propped up by the launch of Sushisawp DeFi governance token. The Uniswap opponent Sushisawp has to be audited still which means it could be a risky investment if things don’t turn out fine. It was a record-breaking weekend for Uniswap as it hit the highest daily trading volume ever and behind its success over the weekend was the crazy price increase of the DeFi governance token which was launched a couple of days ago.
7/ After the 🍣SushiSwap pools are deployed, 100 new $SUSHI tokens will be minted to reward each LP proportionately to the liquidity they provide. This makes sure the LPs stay incentivized in the long-run, as well as to make sure newcomers are properly rewarded.
— Chef Nomi #SushiSwap (@NomiChef) August 26, 2020
Sushiswap is quite similar to Uniswap as it is a liquidity provider that rewards everyone who puts liquidity into its smart contracts with a portion of the trading fees. But in addition to that, Sushiswap offers SUSHI tokens that work as an incentive for contributing to its liquidity pool and it’s a little like DeFi lending protocols that offer governance tokens as a reward for using them such as YFI, Compound’s COMP or Aave’s LEND. Like these governance tokens, SUSHI can be sold on secondary markets.
It’s created by Chef Nomi, who is also anonymously named after a Hearthstone card. The smart contract took off with $16 million of liquidity for Sushi on Uniswap where the price is $2.45 and the volume hit $30 million. Sushiswap wants to compete with Uniswap and it is offering extra bonuses for anyone that wants to migrate their Uniswap LP tokens:
“For the first 100000 blocks (~2 weeks), the amount of SUSHI tokens produced will be 10x, resulting in 1000 SUSHI tokens being minted per block. This is to incentivize early farmers and adopters of the protocol and to help in The Liquidity Migration™️.”
SUSHI is the latest food-based meme coin. Before it came there were Tendies named after chicken tendies which came out as a 4Chan joke and YAM among others. YAM’s founders had to issue a severe apology after the huge bug was found in the smart contracts. Sushiswap has to be audited which means it could be a very risky investment if things don’t go out as planned. Chef Nomi is already arranging audits to prove the legitimacy of the exchange.
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