Uniswap has reportedly touched its highest daily trading volume of more than $450 million accelerated and pepped up thanks to the launch of Sushiswap, the DeFi governance token.
It is the first time that Uniswap has experienced a record-shattering weekend performance. Uniswap hit its highest ever daily trading volume to the tune of over $450 million. The DeFi tokens on Uniswap prices were primarily the reasons for this crazy run but it was further augmented by Sushiswap that was launched only a few days ago. Sushiswap can be considered as Uniswap that meets yield farming. It is quite similar because like Uniswap it is a liquidity provider that provides rewards to those who put liquidity into its smart contracts with a certain portion of the trading fees. Additionally, Sushiswap offers SUSHI tokens as an incentive for contributions to its liquidity pool. This points out in the direction of DeFi lending protocols that provide governance tokens as rewards something similar to the likes of Yearn Fiance’s YFI, Compound’s COMP, or even Aave’s LEND. Similar to these governance tokens, SUSHI can be sold off in secondary markets also.
The new smart contract has succeeded because a 16$ million liquidity has been kept for sushi on Uniswap. Its price is $2.45 with a volume of $30 million. Sushiswap was conceptualized in a bid to compete with Uniswap by offering extra SUSHI bonuses to those users who would migrate their Uniswap LP tokens to them. It further wrote that for the first 100000 blocks, the number of SUSHI tokens that will be produced will be 10X which will be the minting of 1000 SUSHI tokens per block. This will provide a great incentive for new yield farmers as well as adapters to assist in its The Liquidity Migration™️.
SUSHI is the latest addition to food-based meme coins. Before it came YAM which crashed. In fact, the founders had to issue a formal apology right after a huge bug was found in its smart contracts calling for large-scale audits in the system Tendies, named after chicken tenders also came forth as a food-based meme coin. This means that if the network hasn’t been audited it can be a risky investment. This could be true even for Sushiswap which is yet to be audited. Chef Nomi confirmed that it has already been in talks to arrange audits so that the legitimacy of the exchange can be proven.
Chef Nomi tweeted that 10% of SUSHI minted, will be kept aside in order to fund the development and future iterations of the project. This will ensure that the project is secure, not subject to network attacks, and posits a longevity promise. The set amount will also help in bringing in smart contract upgradations and front-end support so that it can be easy to use. It is not encouraging any funds of Venture capitalists but only community funds which will bring changes to the project. In the tweet, it has already invited audit organizations like peck Shield, Consensys, Quantstamp, etc to audit the contracts.