The du table in the currency circle is turning fast. Four days ago, the currency circle was still excited about the increase of YFI, shouting Bitcoin is the real YFI. Yesterday, SUSHI has taken over the spotlight. Still old leeks, flocking to Sushiswap for mining.
The entire cryptocurrency community is crazy about the high yield of SUSHI. There are jokes like earn a Ferrari every day on Weibo, and rich miners appear in the community from time to time:
I put 1 million DAI in this pool
Take 500,000 U to grab the first mine
This is not very stable, I will try to charge 200,000 U
......
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Sushi culture in the currency circle, source of information: circle of friends
KoLs are active again, building communities, opening knowledge Odaily, popularizing wealth codes for new leeks, and new leeks are also happy to discuss various SUSHI mining issues in the WeChat group.
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Sushiswap VS Uniswap, the battle for liquidity
Sushiswap is a replica of Uniswap, the most popular decentralized automatic market-making platform. Uniswap was founded in November 2018. It took a year and a half from its establishment to becoming the first brother of AMM, while Sushiswap only took 3 days from its appearance to its bright moment.
On August 27, the Sushiswap protocol was launched. On August 31, the value of locked assets on Sushiswap has exceeded 700 million US dollars.
There are two main reasons why Sushi was able to take over the baton of popular liquidity mining projects in a short period of time. One is that the current yield farming annualized income is ridiculously high. In the DeFi bull market, the community collective FOMO, no one Willing to miss the next chance to get rich.
Some users said in the community, Most people missed YFI, YFII is the second chance, many people also missed it, SUSHI is the third time, Pearl is the fourth time, if you miss it again, you may miss the DeFi tide. It can be seen that the overall emotion in the currency circle has become more greedy than rational.
Secondly, Sushiswap found a good bid. Sushiswap copied the code of Uniswap, and even the platform interface is said to be the same as Uniswap, hoping to migrate Uniswap users and liquidity to the future Sushiswap platform in this way.
In fact, users in the currency circle generally estimate that Sushiswap will become a strong competitor of Uniswap, robbing the liquidity that the Uniswap platform has accumulated for a long time before ushering in an explosion.
Sushiswap is a copy and an upgraded version of Uniswap. Different from Uniswap, Sushiswap will issue the governance token SUSHI (it is reported that the Uniswap V3 version may be launched as a platform currency). What are the benefits of doing so?
Taking the ETH/CRV trading pair as an example, assuming that user A creates an ETH/CRV liquidity pool on Uniswap, injects a corresponding proportion of ETH and CRV into the pool, and user B conducts ETH/CRV transactions on Uniswap based on the pool created by user A (Injection and redemption of ETH, CRV), Uniswap will charge user B a transaction fee of 0.3%, and this fee will be given to the liquidity provider - user A as a reward.
In the mining scenario of Sushiswap, the 0.3% liquidity reward will be divided into two parts. In addition to the 0.25% handling fee reward for user A, the remaining 0.5% will be obtained in the form of the governance token SUSHI.
Liquidity mining on Uniswap belongs to instant mining. Users can obtain mining income by locking encrypted assets in the liquidity pool, but once the assets are withdrawn, they will lose the right to obtain rewards;
On Sushiswap, user mining has a long-tail effect. The rewards received in the form of SUSHI are equivalent to platform equity. Although the value of tokens will also be diluted, as long as they are held, they can capture platform development dividends.
According to past experience, users are generally bullish on platform tokens. Take the platform tokens of centralized exchanges as an example. Binance launched the platform token BNB in early 2019, and BNB doubled within 4 months. OKEx’s platform currency also once Achieved a 50% gain during the 2018 bear market.
In addition, as a governance token, SUSHI holders can influence the future development of Sushiswap through voting, such as how to issue additional tokens, which trading pairs are open to liquidity mining, and so on. The rights conferred by governance tokens affect the distribution of future benefits, and also raise the expectation of rising token prices.
And SUSHI lived up to the expectations of the miners. According to Coingecko data, the lowest price of SUSHI the night before yesterday was 1.8 US dollars. Last night, the token price once exceeded 10 US dollars, and the increase reached 6 times in one day. On DeBank, the lock-up volume of Sushiswap has been promoted to No. 1 Four people, within 6 days, the locked assets have reached 1.3 billion US dollars.
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Source of information: circle of friends
Doing liquidity mining now is to earn time difference and information difference
Source of information: Twitter
Source of information: Twitter
Sam is a heavy participant in this round of liquidity mining. Sushiswap launched a vote yesterday on which liquidity pools should be added for Yield Farming and liquidity migration. Sam single-handedly invested in the SRM/ETH liquidity pool, which shows the high amount of SUSHI currency held.
And Sam is just a microcosm of many practitioners. In fact, the currency circle is currently in a state of FOMO, and both old leeks and new leeks are rushing into liquidity mining.
The enthusiasm for liquidity mining has lasted for nearly 3 months and has not collapsed. The old leeks who have been cautiously waiting and watching have long been unable to sit still. The early Bitcoin miners represented by Shenyu now have an additional layer of DeFi farmers; Wan Hui, Cao Yin, Lao Bai and others are preaching YFII; Wang Feng said that no matter how high the price rises, he will not sell it YFI...Other old leeks who are famous for liquidity mining include Super Jun, BitMEX founder Arthur Hayes and so on.
Because of their own capital accumulation, the old leeks entered the market with funds and became big players in the liquidity mining game. Sihai said on Weibo that he had locked up more than 50,000 WBTC and RenBTC on Ethereum for mining CRV, YFV (said to be a scam), SUSHI; Shenyu said on Weibo that the investment principal of this liquidity mining will reach about 5 million US dollars.
The old leeks show off their income, build WeChat communities, open knowledge Odaily, and have a large number of new leek fans. They are very busy and have become the most active participants in the new bull market.
When it comes to the bull market, the pace of this round of DeFi bull market is particularly fast. The data is growing rapidly. SUSHI holds 10,000 positions in three days, has a circulating market value of 300 million dollars, and has 210,000 transactions on the chain. In contrast, ht held 10,000 positions in two years, with a total market value of 2.4 billion dollars, and 430,000 transactions on the chain; okb held 40,000 positions in two years, with a total market value of 1.7 billion dollars, and less than 80,000 transactions on the chain. The speed at which DeFi attracts funds surpasses the centralized exchanges in previous years.
Project turnover is fast. YFI, YFII, YAM, SUSHI, PEARL, SUN, etc., hotspots follow one after another. The average duration of each hotspot does not exceed one week, and it will be relayed by new hotspots. As a Weibo netizen said, I just figured out what It’s the second uncle, what are you talking about sushi SUSHI???”
Source of information: circle of friends
Source of information: circle of friends
Behind the scrambling of leeks to rush into liquidity mining is actually the various opportunities derived from liquidity mining itself. Leeks want to be the first to earn dividends from information difference and time difference.
The current market is full of information asymmetry and a lot of games. It is interesting, fun, fresh, and exciting. If you think about it in the dead of night, you can always find a better path. Shenyu wrote on Weibo. In fact, in any game and game, there is always a player who runs ahead.
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YFII community canvassing poster, source: circle of friends
Some users realize that liquid mining has a relatively high pledge demand for ETH, so they stock up on ETH in advance or make more ETH; some users know that the gas fee will increase, so they arrange graphics cards or ETH mining in advance; there are also user awareness On an automatic market-making platform like Uniswap, ETH may suffer huge impermanent losses, so preparations have been made in advance for arbitrage.
Behind the rapidity is that everyone knows that there are risks in the splicing of smart contracts. While they are greedy, the leeks also tense their nerves and want to withdraw in time before the building collapses. On the one hand, the community continues to be excited, FOMO, and profitable. On the other hand, the code is copied casually and modified, and the project can attract so many users and funds. After all, anyone will ask where the extra funds come from. , Is liquidity mining really sustainable?
