DeFi
SushiSwap Creates Sushi Labs Board and Multi-Token Model
Sushi Labs will “accelerate the time to market” of products.
Decentralized exchange SushiSwap introduced a “multi-token” model and created a new “advisory structure” called Sushi Labs, to operate alongside the protocol’s Decentralized Autonomous Organization (DAO).
The new organization will be an autonomous administrative company responsible for managing and overseeing the entire Sushi ecosystem. Sushi has evolved from its previous model due to “heavy governance” according to pseudonymous Sushi developer Jiro, who will hopefully now enjoy an unhindered growth plan.
The proposal, presented on May 26, sparked heated debate. It was approved on June 11 with 19 million (98%) votes in favor and 230,000 against.
This change aims to revive a struggling protocol. SushiSwap’s total value locked (TVL) slipped to $295 million from its peak of $8 billion in November 2021. It now ranks 69th in TVL among all DeFi protocols and 10th in the DEX category, according to DeFiLlama. Uniswap leads the DEX pack, with $6 billion in TVL.
“Sushi Labs is designed to complement Sushi DAO, drive faster, more efficient development, and help us stay ahead in the competitive DeFi landscape,” the team wrote in a statement. blog post yesterday.
Tokenomics Review
Sushi Labs will overhaul the tokenomics of Sushi DAO. The newly established organization will mint 25 million tokens to support its subsidy application from SushiDAO, while introducing a 1.5% APR to strengthen liquidity, encourage participation and strengthen the Treasury, the initial proposal states. The new organization will also be the sole recipient of all future airdrops intended for Sushi.
The market continues to react favorably on the news. SUSHI, the protocol’s native token, is up 4% to $0.99 since the change was announced. SUSHI is down 5% over the past 30 days and up 77% this year.
Sushi Labs will be organized in a council-like structure with four main bodies: the Sushi High Kitchen, the Treasury Board, the Grants Council and the Ambassadors Council. Integrated with six to eight members, the “High Kitchen” will be the central governing body of the protocol, as well as managing a multi-signature wallet set up for transactions.
The structure is similar to that of the derivatives protocol, SynthetixWhich one is divided into seven groups.
SushiSwap was born as the most decentralized version of Uniswap. But four years after its launch, the management team is signaling that it needs greater centralization to continue its growth.