More than $ 800 million has been deposited into the liquidity pool on decentralized cryptocurrency exchange Uniswap, which is currently being transferred to SushiSwap.
With the move led by SushiSwap, if there is nothing unusual, the overall liquidity of Uniswap will decrease by nearly 60%.
SushiSwap, an affiliate of Uniswap, the developers of SushiSwap say their platform is even more advanced than Uniswap.
SushiSwap is gaining popularity because it doesn't look like Uniswap. SushiSwap will reward its liquidity providers with an administrative token, known as SUSHI.
Uniswap has no tokens and is currently distributing 0.30% of the transaction fees collected to liquidity providers. Meanwhile, SushiSwap gives liquidity providers 0.25% transaction fees and converts the remaining 0.05% into SUSHI token rewards.
To "farm" the SUSHI token on SushiSwap, users will now have to migrate the Uniswap LP token to the SushiSwap SLP token.
SushiSwap has seen strong growth in the world of crypto trading since its launch on August 28, reaching $ 1.58 billion in total locked-out value on September 3.
The fact that SushiSwap started transferring more than $ 800 million in liquidity from Uniswap will increase the competition among protocols in the DeFi sector.
Since the launch of SushiSwap has caused a lot of fuss, from the platform's founder accused of being an 'escape scam' for converting SUSHI tokens from project development funds to ETH, so far the project the verdict has not been verified yet. math. This leads some to believe SushiSwap is a scam.