06 Apr 2021 Anthony Lehrman
Liquidity Providers Token Reward Distribution Now Live On Sushiswap
In the third quarter of 2020, the Sushiswap community made the decision to lock 67% of the entire liquidity providers` reward pool for the duration of 6 months. The expiration of the vesting period is due on April 6. All liquidity providers have already been enabled to make reward claims after the multi-signature wallet transferred the accrued tokens to the Merkle distributor.
However, many of the SushiSwap liquidity providers demanded further information about how the accrued SUSHI tokens would be distributed.
„Every Friday for the next six months, users will be able to claim a portion of their rewards from the SushiSwap UI, and every liquidity provider should be able to determine the amount of SUSHI they are entitled to weekly. We were inspired by protocols like Synthetix, whereby rewards are claimed once a week. Importantly, users that do not claim will have their balances rolled into the next week, so no need to spend gas every week if you don’t want to”, the protocol explained on Twitter.
SushiSwap also noted that the gas fees costs will be incurred by Sushiswap and paid from the operational treasury of the protocol. Liquidity providers that earned less than 100 SUSHI through the past six months will be compensated with one SUSHI.
Liquidity providers on SushiSwap are a vital part of the ecosystem, as they provide the needed liquidity for swaps. Currently, SushiSwap liquidity providers yield a 0.25% fee on all transactions, proportional to their share of the liquidity pool.
The news pushed SushiSwap’s governance token – SUSHI, up by almost six percent to reach a price point of $15.65 per token, which was followed by a decrease to reach the current $15.41 per token. The third-largest decentralized exchange in terms of TVL managed to secure a total of $4.28 billion in value locked, according to DeFi Pulse.
Source: DeFi Pulse
Meanwhile, the DeFi ecosystem surpassed the $50 billion TVL milestone, which may increase DeFi governance token prices due to an increased interest. Also, the total market capitalization of the crypto sector spiked over $2 trillion for the first time in history. With 24-hour trading volumes at $209,727,445,700 and increasing, the total market cap of the crypto sector may see a further improvement and set itself firmly over the $2 trillion mark.Crypto Market crypto market monitoring decentralization decentralized Defi Decentralized Finance Decentralized Exchange Sushiswap TVL