SushiSwap runs out of funds

SushiSwap runs out of funds

06.12.2022 14:46 (Updated 06.12.2022 14:12)
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by Maksym Prykhodko
2 min read

DeFi platform SushiSwap proposed redirecting all revenues paid to xSushi holders to its Treasury. SushiSwap Head Chef warned of a significant deficit threatening the decentralized exchange.

Newly appointed as Head Chef, Jared Grey told the SushiSwap community:

Over the past two months as Head Chef, I’ve spent most of my time analyzing the operational and budgetary expenses and liabilities to ensure the project’s long-term success. After reviewing expenditures, it’s clear that a significant deficit in the Treasury threatens Sushi’s operational viability, requiring an immediate remedy.

If the Kanpai proposal is accepted, the company will redirect 100% of fees to SushiSwap Treasury for one year or until new tokemonics is implemented. Users who stake Sushiswap governance token SUSHI receive a token called xSushi, which gives them rewards from all trades on the platform. Currently, xSushi holders receive 0.05% of each swap, 10% of which goes to the SushiSwap treasury wallet. In his proposal, Gray recommended that SushiSwap increases the treasury fee ratio from 10% to 100%, leaving no more the reward in the form of tokens for xSushi holders.

Now the ratio of 31 voters is 77% to 31% in favor of securing Sushi’s future with Kanpai.

Yet, not all community members are satisfied. One of them states:

Depriving xSushi holders of the fees they are entitled to is a breach of primary covenant before the community.

You already went to claw back unclaimed sushi, and it wasn’t enough?

Few things are as long-lasting, as those deemed ‘temporary’.

The proposal was made to turn around the declining trend. Once SushiSwap was a competitor to Uniswap. According to CoinGecko, Uniswap (v3) is on top with $583.033.906 in 24 hours trading volume, while SushiSwap is in 9th place with $16.192.078.

Still, Jared Gray is optimistic that he’ll be able to turn the tide, just as a new CEO can revive a dying company. He told in the interview with Block:

I would say that’s exactly what I’m focused on doing — a kind of wartime CEO methodology right now. Like where can we cut? Where can we lean out?

Author

  • Maksym has denied the existence of crypto as an asset for 3 years when he was working with standard financial instruments. Became Head of Treasury. Won the best bank employee award and left the bank for cryptocurrency exchange the next day. Got a second university degree, but that didn’t stop him from studying finance yet. Combines fiat and crypto experience to be as objective as possible in general matters. His dream is to be interviewed by Bloomberg.

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