The past week and a half have been rather rough for SushiSwap. Overcoming a greedy developer’s actions is never easy, but the project appears to be in better hands now. As such, the liquidity on this platform has grown significantly, which is rather interesting.
Plenty of SushiSwap Liquidity to go Around
It is evident that many people expected SushiSwap to collapse entirely. Things certainly did not look great about a week ago, when its anonymous developer suddenly cashed out his dev shares. Converting vast amounts of SUSHI to Ethereum triggered a major shockwave. More importantly, it brought the price of SUSHI to nearly $1, despite hitting over $11 not that long before. For most projects, it would be the end of the line first and foremost, but it seems SushiSwap is bouncing back rather strongly.
Looking at the overall liquidity for different trading pairs, the statistics look promising. Over $1.3 billion in liquidity is a pretty solid figure, given all of the controversy that has gone on in recent days. All of these pools have gone through a successful migration process to cut all ties with the previous developer. So far, that all seems to be going quite well, although it is early to draw any real conclusions.
The most liquidity can be found in ETH/USDT, rather than SUSHI/ETH. An interesting development, although one that is somewhat to be expected. This latter pair has the most trading volume of all markets and is thus generating the highest fees for token holders. A total of 5 pairs have over $100 million in liquidity, with another four sitting above $50 million. With 40 different markets now supported, it remains to be seen if other pools can up their liquidity as well.
SUSHI Staking is Live
One of the core aspects of holding SUSHI is being able to earn platform trading rewards. Following the migration, this functionality has now been enabled. Users can convert SUSHI to xSUSHI and earn a share of platform trading fees in the process. Determining the success of this feature will not be easy. It all comes down to how many people are willing to use SushiSwap compared to other trading platforms on the market.
It is important to note this does not replace the LP aspect to earn SUSHI. Users can still contribute liquidity to SushiSwap and be rewarded for their efforts. Providing liquidity, earning SUSHI and then staking it as xSUSHI is what the original plan was for this project.
As everything now comes together, the real battle will begin. Sustaining the current level of growth despite the recent setbacks is not easy by any means. The project still faces a lot of criticism and dismay.
Cream.Finance Lists SUSHI
Contrary to what most people had expected, there are other platforms now integrating the SUSHI token. Cream.Finance, for example, has recently done so. Earlier today, it already increased the collateral factor for this token, as well as COMP, YFI, FTT, and LEND. It is interesting to see how things go in the world of DeFi, even if a major setback has occurred.
The big question is whether others will follow this example. More specifically, a lot of DeFi projects are working together in one way or another. All of these intricacies show the need for collaboration is high. What this will mean for SUSHI and SushiSwap exactly, remains to be determined. A lot of work has yet to be done, but these developments offer a glimmer of hope to token holders.