SushiSwap CEO wants to increase DEX market share by 10% by 2023
With the bear market and declining transaction volume, revenues from DeFi protocols have plummeted. To adapt to these economic changes, the CEO of the SushiSwap platform offers several new products to attract new users in the new roadmap.
SushiSwap is on its way to conquering DeFi
In December 2022 Jared Gray, the CEO of SushiSwap, claimed that his company is facing some financial difficulties. The company’s cash would keep them going for a year and a half. To avoid bankruptcy, he explains, “ emergency measures should be taken by their superiors to right the ship.
In this context, SushiSwap published A new roadmap for 2023 and beyond. Decentralized exchange platform (DEX) aims to catch its main competitor Uniswap, which has 6-10 times more monthly revenues:
Monthly income of DeFi protocols between August 1, 2022 and January 15, 2023
In fact, while Uniswap’s total revenue in the last 6 months is $213 million, SushiSwap’s revenue is “only” $23 million. that is, the amount collected is 9 times lower than that of the competitor.
For his company to survive, Jared Gray says his DEX needs to make a bigger impact in the decentralized finance (DeFi) sector. Its goal is to increase the market share of its platform to 10 by 2024 :
“ Today, SushiSwap represents [en terme de volume] About 2% of the AMM market and 0% of the aggregators market. By realizing our vision, we intend to increase our market share by 10 times in 2023. »
Over the next twelve months There will be great changes for society : in addition to the platform’s token tokenomics (SUSHI) overhaul and the launch of a DEX aggregator, SushiSwap plans to launch a decentralized incubator called Sushi Studio.
? Discover the workings and benefits of Decentralized Finance (DeFi).
Trade on the leading DEX
⛓️ The platform at the heart of DeFi
SushiSwap’s new tokenomics
The transformation of SushiSwap (SUSHI) tokenomics was already mentioned by the CEO in December 2022. According to Jarey Gray, these changes are intended to support the long-term commitments of liquidity providers (LPs). :
“The new SUSHI token offering incentivizes the right behavior that benefits the entire ecosystem and all stakeholders by promoting long-term LPs, directing payments to profit-generating activities, and constantly supporting the principles of the token. »
Although a large part of society seems committed to the proposed changes, this new model is not unanimous on one point: the platform plans to integrate a burning system in its tokenomics that will extract tokens from rewards.
When the user releases their crypto-currencies locked in the protocol before the maturity date of the contract, he will lose his financial reward. In this case, the tokens serving as rewards will be permanently removed from the network and replaced by new tokens with an annual emission rate of 1.5% to 3%, which will allow to keep the supply in circulation at a constant level. .
In addition, users who oppose this measure suggest alternatives to reduce the financial penalty imposed on staking users. A suggestion made by one of the internet users would be to linearly or exponentially reduce the number of tokens burned during the staking day: investors could then unlock their funds without parting with their rewards.
A number of discussions are currently underway between the users and the management of SushiSwap for the two parties to come to a consensus.
? Want to know more about Tokenomics? Check out our guide on the topic
The first quarter full of innovations
Economic changes related to Tokenomics are considered along with the deployment of the DEX aggregator. Available from the 1st quarter of this year, The goal is to increase the number of SushiSwap users by offering the best prices in the cryptocurrency market.
Recall that the DEX aggregator is a DeFi protocol that allows you to exchange cryptocurrencies at the best prices by combining the prices of various decentralized platforms in one place.
About the Sushi Studio decentralized incubator, the company wants to strengthen its brand image by encouraging developers who want to increase and improve their product range. Two projects are currently under development and should be launched before April 2023: a DEX focused on derivatives and an NFT platform called Shoyu.
? NFT: our explanations to understand everything in minutes
Cryptoast introduces its first NFT collection
NFTs related to collectible paper magazine ?
Source: MediumFigure 1 – Block Study
Get a roundup of cryptocurrency news every Monday by email ?
What you need to know about affiliate links. This page presents assets, products or services related to investments. Some of the links in this article are affiliate. This means that if you buy a product from this article or register on the site, our partner pays us a commission. This allows you to continue to offer original and useful content. There is no impact on you and you can even get a bonus using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services provided on this page and is not responsible, directly or indirectly, for any damage or loss resulting from the use of the goods or services highlighted in this article. Investments involving cryptoassets are inherently risky, readers should do their own research before taking any action and invest only within their financial means. This article is not investment advice.
AIF recommendations. There is no guaranteed high return, a high return product involves high risk. This risk-taking should be appropriate to your project, your investment horizon and your ability to lose some of this savings. Do not invest unless you are prepared to lose all or part of your capital.
To go further, read our Financial Status, Media Transparency and Legal Notices pages.