Sushi Improvement or Modification to the Protocol #2
Introducing Onsen, our new liquidity mining incentivization program, a replacement of our Menu of the Week initiative intended to bring positive long-term liquidity changes as well as ensure stability of our platform.
Bringing new liquidity onto our exchange, decreasing slippage, expanding our pool offerings and creating exciting synergistic partnerships with other DeFi projects. Onsen allows tokens that are voted to become accredited to participate in our liquidity mining program.
58 tokens pairs will be eligible to receive accreditation. Every 90 days, the accredited list is re-evaluated to ensure that there is maximum capital efficiency for the SushiSwap ecosystem.
Onsen has 2000 allocation points (AP) set aside for it. These AP are what determine how much of our new token emissions (SUSHI minting) are awarded to incentivized Onsen pairs, the same way we allocate rewards to the permanent menu.
So how do we decide what token deserves what percentage of rewards? And how do we ensure that it benefits both the project in question and SushiSwap’s protocol as a whole?
By using a new weighting method to ensure that accredited tokens receive allocation points proportionate to their market cap!
Out of the 2000 AP, MISO (Minimal Initial Sushi Offering) projects get to take part of a 200 AP reserve that will initially be reserved for 3 months.
The remaining 1800 AP are divided based on the market cap size of the applicant token. To keep this manageable, we have created 3 categories according to market cap size average;
Midcap (25m-100m Market cap)
- 13 pairs maximum
- 100 AP per pair
Lowcap (25m-5m Market cap)
- 25 pairs maximum
- 20 AP per pair
Gems (5m-1m Market cap)
- 20 pairs maximum
- 10 AP per pair
We will make it easy for projects to contribute to a Joint Liquidity Mining contract in a few weeks by releasing a wrapped MasterChef contract where they will be able to distribute their own tokens in addition to Sushi. (Double the yield!)
As there are some projects already participating in a Joint Liquidity Mining initiative with us, or moving their liquidity to SushiSwap, we will accredit $AMPL, $zLOT and $SEEN tokens from the very beginning.
Applying to the Onsen program, applicants must send 1000 SUSHI or 2 ETH to be used in permanent, irrevocable liquidity provisioning in the SUSHI-ETH pool to ensure serious projects are partaking in the process.
This accounts for a total of 58 pairs, contributing a total of 58 000 SUSHI burned or 116 ETH locked in liquidity every 90 days (Note: For the first round the first 25 pairs to apply won’t have to contribute any fee), as specified per basic application requirements seen in the next section.
Basic Application Requirements
Our listed requirements below are not exhaustive. SushiSwap core team reserves the right to reject applications from tokens deemed to be a risk or loss proposition for the SushiSwap ecosystem or where there is contentious debate in the community about the token and its protocol.
If applicant has fulfilled the requirement of providing and locking liquidity as a show of good faith (1000 SUSHI or 2 ETH), and is rejected, the liquidity will not be returned and should be considered as a non-refundable application fee.
Any Applicant token that is already whitelisted at Balancer satisfies the base requirements to become accredited and only needs to conform to points 1 & 2 in the below list.
Proposed pair must already exist as a liquidity pool with a minimum of $1,000 in TVL before applying.
1000 SUSHI or 2 ETH must be sent to the specified wallet, with the message containing the token’s ticker and proposed pairing, i.e “SUSHI / SUSHI-ETH” or similar.
(The first 25 projects to apply don’t need to send any SUSHI or ETH to be reviewed)
Applicant token must have an age exceeding 14 days, must not charge fees upon transfers and is highly recommended to be Verified on Etherscan.
Applicant token must be listed on CoinGecko as we use their platform to provide a consistent way of evaluating the tokenomics for all Onsen applicants.
Applicant token cannot be a token that has no intrinsic value proposition, and must have an overall function or purpose for existing. Tokens that are perceived by the community or core team to have no existential purpose beyond that of being traded will be rejected.
Disclosure & Optional Criteria
If the project applying to participate is headed by Anonymous founders, we will conduct a basic due diligence to ensure no malicious projects are being included in the Onsen program.
Audited projects are prioritized.
Projects willing to migrate their Liquidity Mining Programs to SushiSwap will be prioritized
Application reviews will be performed by 1-2 members of SushiSwap core team who will also choose 3 random community members to participate in the review (must have participated in at least 5 governance votes).
Community members elected to assist in the accreditation process will be compensated 500 SUSHIs for their time.
The fee is to curb spam and deter non-serious projects from applying.
Rebasing tokens might require some technical alteration to be supported.
- Yes - Burn the sushi
- Yes - Lock funds in SUSHI/ETH
- Yes - With modifications