To no one’s surprise, we have another emoji coin set to launch.
This time a Uniswap fork named after a Japanese dish - SushiSwap.
SushiSwap is likely not anymore interesting than any other emoji coins, but it stands out for a couple reasons.
1/
messari.io/article/what-t…
The idea behind SushiSwap is simple.
It’s Uniswap but with a token and liquidity incentives.
Instead of Uniswaps 30bp fee going entirely to liquidity providers (LPs), only 25bps goes to LPs with the remaining 5bps distributed to SUSHI token holders.
What's interesting is the token distribution plan.
SushiSwap will award tokens to users who stake selected Uniswap LP tokens into SushiSwap contracts.
The following are eligible Uniswap LP tokens - all ETH / [Popular DeFi token] pairs.
For the first 100,000 blocks (~two weeks) following its launch tomorrow SushiSwap will mint and distribute 1,000 SUSHI tokens per block to the stakers of each of the supported pools.
After the 100,000th block rewards will drop to 100 SUSHI tokens per block.
The idea is to provide strong incentives upfront to suck in liquidity ahead of its “Liquidity Migration”.
This “Liquidity Migration” will effectively fork the liquidity from Uniswap, with little effort required from users beyond that initially required to stake.
This could significantly reduce the friction of forking an AMM.
SushiSwap is more than likely a shitcoin protocol and is not a realistic challenger.
But don't miss the forest for the trees.
There's a trend emerging 👀
messari.io/article/what-t…
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