Co-written with 0xMaki (SushiSwap Core Contributor)
Migrate the entire PoolTogether liquidity mining program from Uniswap V2 to SushiSwap by integrating with MasterChef V2.
PoolTogether currently has both Uniswap V2 & SushiSwap for its liquidity mining program ($3.6m TVL on Uniswap V2 vs. $250k on SushiSwap for POOL/ETH) but the UX hasn’t been updated for Uniswap V2 due to Uniswap V3 which can be confusing for newcomers to liquidity provision. SushiSwap is multi-chain (Polygon, Celo, & more) and has an ongoing suite of products rather than just simply being a AMM DEX. The POOL liquidity mining program is eligible for double rewards in the form of SUSHI + POOL which eases the burden of impermanent loss. SushiSwap also has the upcoming release of Shoyu (NFT platform) and Trident (AMM) in the coming months.
SushiSwap Liquidity Mining Benefits:
SushiSwap distributed accrued protocol revenue from 0.3% protocol trading fees between LPs (0.25%) and xSUSHI token holders (0.05%). $xSUSHI is received after depositing SUSHI into a pool called SushiBar; a way to distribute a portion of accrued revenue to token holders. LPs in the Onsen liquidity mining program are also rewarded in the SushiSwap native token SUSHI.
Being multi-chain with a presence on Polygon, Celo, Avalanche, Fantom, and more lays the groundwork to easily migrate POOL to other chains from a single location.
Double rewards by integrating with MasterChef V2 enables projects to add their own incentives on top of SUSHI rewards. These rewards are able to be configured as a multiple of SUSHI rewards or another standard like block hash and block time stamp. MasterChef V2 brings cheaper gas than MasterChef V1 since storage slots on Ethereum are optimized from three to one total slots. Rewards are all now claimed on-demand so the user can choose when and how to harvest their rewards. Double rewards helps ease the burden of impermanent loss for POOL and decreases the price impact/slippage of individual purchases making the process more efficient overall.
Kashi & BentoBox: SushiSwap easily allows lending, borrowing, and margin trading through Kashi which is built on top of BentoBox. BentoBox serves as the vault that securely stores tokens and generates yield from flash loans and strategies for protocols built on top of it. BentoBox holds the tokens while Kashi utilizes the assets stored for lending, borrowing, and margin trading. This could allow POOL users to earn interest lending out their assets to margin traders while earning rewards from liquidity provision or farming.
Trident: Launching in the coming months, the anticipated update for SushiSwap can be broken into three portions: new BentoBox strategies, expansion of pool options, and a new routing engine. Trident grows the expansion of pool options to four pool types. The first being the constant product pool which is made up of an equal monetary value of each. The second type is the hybrid pool which allows users to swap assets with a reduced price impact. Users can include up to 32 assets in a single pool. The third is the concentrated liquidity pool which asks users to specify the token asset’s price range to add liquidity to. This allows providers to more narrowly scope their liquidity provisioning to maximize how much is earned from fees across SushiSwap. The last pool type is a weighted pool which allows different weight types with up to eight tokens in a single pool. Migrating the liquidity mining program will expose POOL to a wide variety of new users and create the ability to route trades through a variety of pool types.
POOL liquidity provision will be eligible for double rewards meaning both the existing SUSHI rewards (Currently 18.78 SUSHI per day) and POOL can be earned potentially increasing the existing rewarded amount from the Uniswap V2 liquidity mining program. The size of SUSHI rewards will be decided based on pool TVL and transaction volumes. And it will be adjusted to reflect changes in the pool performances. We have agreed to match the length of the existing liquidity mining program in place.
We welcome feedback from the community on this proposal.
Should PoolTogether migrate the liquidity mining program from Uniswap V2 to SushiSwap and integrate with MasterChef V2?