Sushiswap's Role in the Yearn Finance Ecosystem - Decentralise #53

Onsen and YPIE metagovernance

Sushiswap’s and YPIE.

Today I’m continuing the deep dive on the projects included in PieDAO’s upcoming Yearn Ecosystem Pie ($YPIE).

As $YPIE will soon feature metagovernance (allowing DOUGH holders to participate in each of the protocol’s governance votes) I think it’s important to understand what’s going on.

Today it’s Sushiswap’s turn, a project that is making big waves in the AMM space with an exciting array of new features.

Sushiswap gets a healthy 34.4% of $YPIE’s allocation due to the weight-based methodology we apply, so let’s dive in!

If you didn’t check it out already be sure to read the interview I did with Sushiswap’s lead developer 0xMaki. He gave his insight on the relationship with Yearn, his respect for their developers, and upcoming Sushiswap features.

Sushiswap and Yearn

Sushiswap is managing Yearn’s AMM (automated market maker) division, providing easy token swaps between ERC-20s.

AMMs have become an integral part of DeFi, giving users easy non-custodial token swaps while liquidity providers earn an attractive return.

Sushiswap are capturing a growing share of the dex market, up $1.1b in November despite total DEX volume dropping by 15.8%.

Sushiswap will also be launching Andre’s Deriswap, as well as an unannounced stealth project.

I covered the details of the initial announcement in a lot of detail here

So what’s new?

It’s a really exciting time for Sushi fans right now.

There’s currently a vote for Onsen, the liquidity mining incentivization program that is replacing the Menu of the Week.

Onsen promises improved liquidity, reduced slippage, and will see 58 token pairs eligible to be incentivised with extra SUSHI rewards, updating via governance every 90 days.

SUSHI holders will be able to vote in a broad range of pairs to be incentivized, including PieDAO’s governance token DOUGH, large market cap DeFi index DeFi+L, and Balanced Crypto Pie (33.33% BTC, ETH, DeFi) BCP.

Alongside this Clearwood, the developer working on upcoming Bento Box (including limit orders and margin shorts) has joined full time, and YFI has been added to the Sushi treasury.

If you didn’t already subscribe to Nomad’s Yearn Partner Roundup then I recommend it, he provides a fantastic depth of detail on each underlying project every week.

Conclusion

Sushiswap have done an incredible job in recent times, with 0xMaki steering the project to success.

Their increasing trading volume is in my view a clear sign of their growth, and the upcoming features are exciting to say the least.

I also love that liquidity providers can vote using their Sushi-ETH LP tokens, as well as staked xSUSHI.

The partnership with Yearn has been a massive vote of confidence and the future seems bright for Sushiswap.

Join the Sushiswap community.

Yesterday’s post: Understanding Keep3r Network