With the bear market and falling transaction volumes, revenues from DeFi protocols have drastically reduced. To adapt to these economic changes, the CEO of the SushiSwap platform proposes in his new roadmap several new products to attract new users.
https://cryptoast.fr/pdg-sushiswap-veut-multiplier-par-10-parts-de-marche-pour-2023/
SushiSwap on its way to conquer DeFi
In December 2022, SushiSwap CEO Jared Gray claimed his company was facing some financial difficulties. The company’s cash would allow them to maintain their activities for a year and a half. In order to avoid bankruptcy, he explains that “ immediate actions must be taken by its leaders to right the ship.
It is in this context that SushiSwap has published its new roadmap for 2023 and beyond. The decentralized exchange platform (DEX) intends to catch up on its main competitor Uniswap, whose monthly revenues are 6 to 10 times greater:
Monthly revenues of DeFi protocols between August 1, 2022 and January 15, 2023
Indeed, while Uniswap’s cumulative revenues over the last 6 months amount to $213 million, those of SushiSwap “only” reach $23 million, i.e. a sum collected 9 times lower than its competitor.
For the survival of his company, Jared Gray says his DEX needs to make more of an impact in the decentralized finance (DeFi) sector. Its objective is to multiply by 10 the market shares of its platform before 2024 :
“ Today, SushiSwap represents [en terme de volume] approximately 2% of the AMM market and 0% of the aggregators market. By implementing our vision, we intend to increase our market share by 10 times in 2023. »
Over the next twelve months, many big changes will take place for society : in addition to an overhaul of the platform’s token tokenomics (SUSHI) and the launch of a DEX aggregator, SushiSwap plans to start a decentralized incubator named Sushi Studio.
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SushiSwap’s new tokenomics
The transformation of SushiSwap (SUSHI) tokenomics had already been mentioned by the CEO in the month of December 2022. According to Jarey Grey, these changes are being considered to support the long-term commitment of liquidity providers (LPs) :
“The new SUSHI token proposal incentivizes correct behavior that benefits the entire ecosystem and all stakeholders by encouraging long-term LPs, directing fees to activities that generate profits, and perpetually supporting the principles of the token. »
Although a large part of the community seems to adhere to the proposed changes, this new model is not unanimous on one point: in its tokenomics, the platform plans to integrate a burn system that will remove tokens from staking rewards.
When a user releases their cryptocurrencies locked in the protocol before the maturity date of their contract, he will lose his financial reward. In this case, the tokens serving as a reward will be permanently erased from the network, and will be replaced by new tokens with an annual emission ranging from 1.5% to 3%, making it possible to maintain the supply in circulation at a stable level.
In addition, users opposed to this measure offer alternatives to reduce the financial penalty imposed on staking users. A proposal made by one of the Internet users would be to reduce, at a linear or exponential rate, the quantity of tokens burned per day of staking: investors could then unlock their funds without saying goodbye to their rewards.
Currently, several discussions are taking place between the users and the executives of SushiSwap so that the two parties reach a consensus.
👉 Want to know more about tokenomics? Check out our guide on the subject
A first quarter full of novelties
Economic changes related to tokenomics are considered alongside the deployment of a DEX aggregator. Available from the 1st quarter of this year, its goal is to increase the number of SushiSwap users by offering the best prices in the cryptocurrency market.
As a reminder, a DEX aggregator is a DeFi protocol allowing cryptocurrencies to be exchanged at the best prices by aggregating the prices of the various decentralized platforms in the same place.
About the Sushi Studio decentralized incubator, the company wants to strengthen its brand image by promoting developers wishing to increase and improve its product range. Currently, two projects are in development and should be launched before April 2023: a DEX focused on derivatives contracts, and an NFT platform in the name of Shoyu.
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Source: MediumFigure 1 – The Block Research
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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