There are currently no mechanics to control the emission of Sushi to liquidity pairs. With reward vesting removed we are seeing increased selling pressure for SUSHI, making yield less attractive for liquidity providers.
Sushi started with Discord voting to decide which pairs should receive incentives and moved into a more opaque model decided by the core team. There are two problems: 1) emission has limited quid pro quo in terms of fees vs emission, and 2) Sushi is submerged by Onsen listing requests.
We believe that curve.finance, through its veCRV token, has built one of the best token designs in the space for emission based projects.
Following veCRV and DILL from pickle.finance to direct emissions, we propose SushiSwap deploys oSushi (OnsenSushi), developed by Curve, myself, and Pickle team, and having been audited 4 times across 3 different firms.
oSushi can be used as a minimum pre-requisite for projects to stake oSushi to be come eligible for voting gauges on the onsen interface.
Once available, oSushi can be used to vote weights, replacing current allocation points. Weights define emission for each individual LP position (technically not LP, but any tokenized position)
Lock SUSHI between 1 month to 4 years to receive oSushi
oSushi becomes non-transferable and non-tradeable
Can be unlocked with a penalty of 50%, which will be distributed to xSushi stakers.
1 oSushi = 1 vote
Minimum (to be defined) oSushi staked allows projects LP tokens to appear on onsen autonomously
Voting on Onsen allocations will happen every week, allocating a portion of emissions across all liquidity pairs on SushiSwap and potentially Kashi/cross-chain SushiSwap iterations in the future
Once you vote, your vote will remain directed at pools unless modified
Users will have the ability to change their votes every week and will be able to allocate their oSushi to different pools
oSushi allows the user to control Sushi emissions across all ecosystem products in the future
oSushi increases emission from a base factor of 0.4 to a max of 2.5x, the more oSushi you stake, the more Sushi you earn
Teams will be incentivized to run Miso auctions asking for Sushi so they can lock a high amount of oSushi at launch and provide high liquidity pairs right at launch or market-buy Sushi lock them for incentives.
Whales will be required to stop selling their entire Sushi emission otherwise their earnings are slowly eroded to 0.
Community members holding oSushi expose themselves to tokens airdrop so they can delegate voting powers to new entrants. (EPS on BSC, or FROYO on Fantom)
Projects who held their Sushi - xSushi and have been part of the Onsen benefits by retaining their emissions.
Yield Aggregators will build up positions in oSushi so they can maintain or achieve the highest yield for their communities.
Current Onsen 230 pairs in total since launch assuming an average locking of Sushi per project around 750k$ worth of Sushi at current market price * 12.75$ = 58k Sushi * 200 = 11M Sushi potentially converted into oSushi. Taxing the current emissions and erasing the ⅔ unlock.
- Andre Cronje
- oSushi is the wei
- Revisit the sushinomics
oSushi locked for 1+ year should be staked into xSushi and earning yield too.