The founder of Uniswap, Hayden Adams criticizes SushiSwap, a fork of the decentralized exchange Uniswap, which was launched five days ago In its short lifespan, it has managed to achieve a total value of more than $ 1.3 billion.
Like most other “Liquidity Mine” starts, Participants can stack their fortunes to earn SUSHI, the project’s native token. The detail is that the assets are actually Uniswap tokens. Allow farmers to give in Earn SUSHI without giving up your liquidity provider’s rewards.
The project was born in what appeared to be a preventive movement regarding the launch of Uniswap V3, What is speculated brings with it the expected Uniswap token.
The ad places great emphasis on it in a fair place to promise that The first liquidity providers will always have a share in the premiums, even if they no longer provide such liquidity in the future.
The project developers have indicated this further LPs (liquidity providers) could see their stake in Uniswap diluted if “stakeholders like hedge funds, exchanges, mining pools join the protocol with enormous amounts of capital”.
The idea of A fair start reflected the DeFi ecosystem. The community often criticizes token distributions that openly indicate or announce permissions. Strongly backed by venture capital, Uniswap is unlikely to provide all of its tokens to the community.
Adams critical this approach and rejected the arguments that SushiSwap is more community-focused, highlight:
“I can’t tell who is faking it, and who rightly doesn’t understand that the $ 1 billion TVL paid into an incredibly high risk investment in a single day warn that it is largely massive Whales. “
According to him, SushiSwap is “only whales playing whale games”. He may not have gotten completely out of hand in this regard.
Etherscan data shows that Uniswap only contains 2318 unique addresses in the SUSHI / ETH token pool in order to receive rewards. Based on the fact that the total lock value of these contracts is approximately $ 173 million, the average staker position is $ 74,600. Since the contracts have not been checked and considerate This average, which is relatively complex by Synthetix co-founder Kain Warwick, is expected to make up a small fraction of the participants’ capital.
The fashion for “cultivating” sushi is based on extremely attractive yields. According to your board, The use of SUSHI / ETH delivers 5.58% of tokens daily. It’s worth noting that any single-digit daily return quickly adds up to astronomical values. and Ponzi programs often use the promise of daily return to attract their participants.
While the basic promise of SushiSwap may appeal to certain DeFi-Mania enthusiasts, The main reason for the high return is probably the specific dynamics of the liquidity supply. The SUSHI / ETH group is the only agricultural group that SUSHI manages as such. and should offer twice the profit in tokens compared to other projects. Liquidity miners must buy SUSHI for half of their capital to join the pool. This is where the demand arises that is necessary to maintain these high returns.
In about 9 days, SushiSwap will automatically redeem all your tokens at Uniswap and create their own pools to enable the decentralized exchange. With 77% of Uniswap’s total blocked value, SushiSwap can take over a significant portion of Uniswap’s liquidity. The token has already been listed by companies such as Binance, FTX and OKEx.
If the entire locked value remains at its current level, Uniswap could see its leadership being taken away from its own clone, which could have a significant impact on future projects.