The migration of liquidity to the popular Sushiswap protocol is underway. The first pool was successfully migrated.
The Uniswap fork that caught all the attention last week, the Sushiswap, is moving forward with the migration of liquidity in it. According to Depo Zippo monitoring service, there are about $ 830 million blocked in the protocol that will be migrated from Uniswap to Sushiswap. Leading the operation is FTX’s CEO.
Liquidity migrating from Uniswap
Sushiswap is a fork of Uniswap with a twist – it adds a governance token, essentially turning it into an automated community-owned market maker.
The past few days have seen enormous challenges ahead of the project, as its lead developer, following the anonymous Twitter chief Chef Nomi, dumped the developers’ entire fund into the market, raising the price to more than 50%.
Condemned by the community as an ‘exit scam’, he transferred administrative control to FTX’s CEO – Sam Bankman-Fried.
One of the first things he did was to confirm a general plan for the project and transfer control to a multisig portfolio controlled by a group of people, to ensure decentralization and more security. The owners of this multi-signature wallet were voted by the community and some of them include Sam Bankman-Fried himself, Larry Cermak, Adam Cochran and so on.
Now, the protocol is migrating the liquidity locked out of Uniswap. Adam Cochran confirmed that the first migration from the Sushiswap (CRV) pool has already been completed.
– Adam Cochran (@AdamScochran) September 9, 2020
“The first $ SUSHI @SushiSwap ($ CRV) pool migration was successfully migrated”
To facilitate liquidity providers (LPs), Sushiswap allowed them to deposit Uniswap liquidity tokens in the protocol. That way, LPs could staking their tokens on Uniswap, receive the UNI-V2 liquidity tokens and deploy them on Sushiswap for a huge APY.
The second phase of the project, however, sees this liquidity migrated from Uniswap and placed directly on Sushiswap.
According to a official blog post from Boring Crypto and confirmed by the FTX CEO, the migration contracts have been completely audited and are free of critical errors.
More incentives after migration
Sam Bankman-Fried will distribute 1 million SUSHI tokens to people who continue to provide liquidity after the migration.
The plan is to distribute these tokens equally based on the overall dollar value of the staking liquidity.
In addition, there is also a proposal from the community to use an additional 1 million SUSHI from the development fund and increase the rewards to 2 million SUSHI in total.
Once everything is complete, liquidity will remain on SushiSwap and users will be able to start adding trading pairs.