Founder of Uniswap dismisses copycat that could ‘steal’ 75% of its liquidity
Uniswap’s founder Hayden Adams is railing against SushiSwap. It is a five-day-old fork of Uniswap’s decentralized exchange. It has managed to attract over $1.3 billion in value locked over its short lifespan.
Participants can stake their assets, like most other liquidity mine launches. It will help them to earn SUSHI, the project’s crypto tokens. The main twist is that the assets are Uniswap pool tokens themselves. This allows yield farmers to obtain SUSHI without foregoing their liquidity provider rewards.
The whole project was launched in a seemingly preemptive move ahead of Uniswap V3. This is speculated to bring the anticipated Uniswap token with it.
This announcement places heavy emphasis on a fair launch. It promises that initial liquidity providers will always have a share of the rewards. This will be true even if they stop the provision later on.
The project’s developers further hinted that LPs might see their stakes diluted on Uniswap. This will happen as stakeholders such as venture funds, exchanges, and mining pools join the protocol with a vast capital.
The thought of a fair launch resonates strongly in DeFi. The community often criticizes token distributions that either hint or openly announce premises. With its heavy venture capital backing, Uniswap is unlikely to devote all of its tokens to the community.
There are only 2318 unique addresses. These staked the Uniswap SUSHI/ETHpool token to receive rewards. The total value locked in these contracts is approximately $173 million. The average staker’s position amounts to $74,600. The contracts were unaudited and deemed relatively complex by Synthetix co-founder Kain Warwick. The average value is hopefully a small part of the stakers’ capital.
The allure of farming Sushi comes from its too enticing yields. Staking SUSHI/ETH provides 5.58% worth of tokens daily. A daily single-digit yield quickly compounds to astronomical values. This promise of daily yields is often used by Ponzi schemes to lure participants in.
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CBW - External Analyst