Sushi Goes Live on Polygon (MATIC), Andre Cronje Proposes A Curve like Mechanism for it
Bringing BentoBox powered Kashi on Polygon, Sushi is further making fees “even more astronomically minimal” to perform leveraged margin trades. Meanwhile, Yearn creator’s oSushi proposal is to counter increased selling pressure on SUSHI.
The Sushi multichain family has grown to include Polygon, previously known as Matic, which has reached $3.5 billion in total value locked.
Sushi already supports other EVM-Compatible chains, including Fantom, BSC, HECO, xDAI, and Harmony.
Polygon is a layer 2 solution that provides scalable, secure, and instant Ethereum transactions using Plasma side chains and a Proof-of-Stake network. Sushi is only bridging to the PoS chain, and now users of the DEX SushiSwap have the option to move their ERC20 tokens to the Polygon network by crossing them over the Matic Bridge.
During this process, once you send your tokens over the Matic bridge, they are locked on the Ethereum network, and the same number of tokens are minted on the Polygon network as a pegged token (1:1). When moving them back to the Ethereum network, tokens are burned on the Polygon network and unlocked on Ethereum.
Sushi, which has about 18.5% market share of DEX volume, has also hosted its first non-Ethereum Mainnet Onsen farms.
In addition, its newest product Kashi powered by BentoBox is brought on Polygon to make fees “even more astronomically minimal” to perform leveraged margin trades. Currently, there are 7 markets available on Kashi through Polygon.
This latest development has the price of the SUSHI token surging to $17.13 but still down 27% from its all-time high of $23.38 two months back.
In the last two days, SUSHI jumped 36% despite the dominant DEX Uniswap deploying its v3 on the Ethereum mainnet.
Unlike SUSHI, MATIC’s price is currently down at $0.76, but it was only a week back it hit its ATH at $0.94. Also, the native token of QuickSwap, the AMM built on Polygon, QUICK token took a big fall of 26.5% to $595.
Amidst this, on Friday, Yearn (YFI) creator Andre Cronje introduced non-transferable and non-tradeable oSushi, a supply & demand vesting-based design for emission-based projects.
With no mechanics to control the emission of Sushi to liquidity pairs currently and removal of reward vesting resulting in increased selling pressure for SUSHI, making yield less attractive for liquidity providers, Cronje is proposing a Curve like a mechanism under which SUSHI tokens will be locked between 1 month to 4 years to receive oSushi.
“If you haven't connected the dots yearn will be getting into the sushi lp game with this,” noted analyst Ceterispar1bus.