Sushiswap launches new token to address liquidity crunch

Sushiswap team aims to create a decentralized exchange (dex) Liquidity problem due to poor market conditions.

Sushiswap Redesigns the SUSHI Token Economy

To tide over the severe liquidity crisis experienced by sushiswap DEX, the team is introducing a new token model designed to promote decentralized ownership and liquidity growth through a holistic and sustainable system.

it Remembered that SushiSwap’s head chef Jared Gray made it clear earlier this month that the current bear market has made the project’s current token economics and reward system unsustainable. If a permanent solution to the problem is not found, the protocol may soon become defunct, he added.

As stated in the new Tokonomics of the project offerThe team plans to nip the liquidity crunch in the bud through four key measures, which include incentivizing Liquidity Providers (LPs) with scalable volume and non-dilutive token rewards, using exchanges to promote LP opportunities, Supporting product stack improvements, including creating a customized space. reward mechanism to increase Sushi’s market share, and revamp its governance with a more equitable model.

Team said:

“The newly proposed Sushi Token model properly incentivizes behavior that benefits the entire ecosystem and all stakeholders by incentivizing long-term liquidity provision, directing fees to profit-making activities, and supporting sustainable token principals.”

The developers firmly believe that the new model, if successfully implemented, will enable SushiSwap to remain solvent in all market conditions, as it completely removes the pressure from the Sushi Treasury.

As of press time, Sushiswap is the 20th largest decentralized finance in the world (DeFiThe protocol with $454.12 million in total value locked (TVL), according to Defilama. On the other hand, according to Coinmarketcap, the price of Sushi is hovering around $0.938 with a market capitalization of $208.4 million.

Sushiswap introduces new Tokenomics to tackle liquidity crunch - 1
SUSHI/USD Daily Chart. Source: Coinmarketcap

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