While the DeFi market has continued to reflect the crypto market rally, more innovations have been introduced into the ecosystem. In today’s news, Sushi SwapThe sixth largest decentralized exchange (DEX) by 24-hour trading volume has approved a proposal to transfer 100% of its trading fees to the SushiSwap treasury for maintenance and expenses.
Related reading: SushiSwap Head Chef Suggests Cooking New Token Model – Will DEX Survive 2023?
SushiSwap is introducing a new update.
The new update comes after CEO Jared Gray warned that the stability of the exchange’s treasury was counted as it cut annual operating expenses from $9 million to $5 million during the ongoing crypto winter. has “only 1.5 years of Treasury runway left”.
According to the presented governance Suggestion Through the developers of the SushiSwap Decentralized Exchange, which was approved on January 23, the SushiSwap Exchange will now increase the operation and maintenance of the exchange over the next one year by directing the use of trading fees to the exchange’s treasury.
“Revenues to the Treasury will be 50% ETH and 50% USDC, expected to generate ~$6m over the next year if the proposal is approved,” the proposal said. I Another suggestion That same day, approximately 99.85% of voters voted to “clawback” 10,936,284 unclaimed SUSHI ($14.8 million) tokens during the DEX’s launch in 2020.
Sushi Swap Painful Loss and Recovery
The crypto winter undoubtedly affected the most projects in the industry, including D. Fi Platforms like SushiSwap. Last December, SushiSwap CEO Jared Gray revealed that DEX had lost $30 million over the past 12 months on incentives for liquidity providers (LPs).
To combat this loss and begin recovery, Gray revealed. Plans To improve SushiSwap’s toconomics so that LPs are no longer bankrolled with exits and redesign the entire model of bootstrapping liquidity on the exchange.
The “Kanpai” governance proposal, which aims to transfer trading protocol fees to the treasury, was also cited by Gray when explaining plans to update the sushi swap exchange.
“Simply put, it (Kanpai) allows the protocol to continue to pay competitive wages, pay for critical infrastructure, and diversify its treasury with funds pooled in underlying asset pairs, such as ETH, stablecoins, etc. “Allows cash reserves to rebuild. Savings is a temporary solution,” Gray said.
Speaking of SushiSwap, the protocol’s native token, SUSHI, has been on a rally, following the rest of DeFi. Department.
Sushi has grown more than 40 percent in the last 30 days. Meanwhile, at the time of writing, Sushi It trades at $1.34, down 1.4% in the last 24 hours and with a trading volume of $58.6 million over the same period.
Featured image from BlockchainReporter, chart from TradingView
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