Leading decentralized exchange SushiSwap has revealed how it will distribute liquidity provider tokens that have been locked up for the past six months.
According to an April 6 tweet, the SushiSwap community decided to lock two-thirds of liquidity provider rewards for six months during Q3 2020. That lockup period has now lapsed leaving those rewards to be distributed.
It stated that today, April 6, the multi-signature wallet distributed the accrued SUSHI rewards to the Merkle distributor ready for claiming.
Dividing up the loot
Every Friday for the next six months, users will be able to claim a portion of their SushiSwap user interface rewards.
Liquidity providers can work out how much they’re entitled to by using a calculator hosted on Github. It should be noted that this process is not done automatically for them by the protocol.
SushiSwap stated that it’s been inspired by platforms such as Synthetix that allow users to claim weekly rewards. It added that users that don’t claim will have their reward balances rolled into the following week. This will also enable savings on gas fees. It added that it would cover fees for smaller earners:
“To compensate for gas fees, liquidity providers that earned less than 100 SUSHI through the past six months will be compensated with one SUSHI.”
The whales that earned over $100,000 in rewards will get theirs via the platform’s Merkle distributor.
It added that this was being done to allow most SUSHI rewards to be managed through one interface and by the end user.
“The community was top of mind when this decision was made.”
SushiSwap liquidity providers earn a 0.25% fee on all trades proportional to their share of the pool.
Both DappRadar and DeFiPulse rank SushiSwap as the sixth-largest DEX by total value locked with figures at $4.7 billion and $4.3 billion respectively.
SUSHI price outlook
SUSHI prices have made 5.8% on the day at the time of writing according to CoinGecko. The token was trading for $15.66 but had fallen back from its weekend high of $16.54.
SUSHI prices hit an all-time high of $23.20 on March 14 but have retreated 33% since then. Since the beginning of the year, however, token prices have surged 445% pushing its market capitalization to $2.2 billion.
The DEX has grown so fast that it has almost caught up with the market leader, Uniswap.