Vampire mining could be the new fashion trend in the DeFi industry


  • SushiSwap swears it is better than Uniswap for liquidity mining

  • SUSHI Token Soars From Zero To $ 2.65 In A Couple Of Days

  • DeFi TVL grows 15% to $ 8.45 billion

International consortium of news organizations developing transparency standards.

The outgoing week turned out to be fruitful for profitable farmers who received new tools and a new “unplowed field” for earning money. SushiSwap project became a fresh sensation in the field of profitable farming.

Uniswap is the undisputed leader in the token exchange industry, holding the lion’s share of the market and over $ 500 million in digital assets. Despite the many advantages over centralized exchanges, the project has its own nuances. For example, here you can easily register fake tokens or perform price manipulation..

SushiSwap is a new project that bills itself as “a new generation Uniswap with SUSHI-style tokenomics.” SushiSwap protocol generates another control token due to liquidity on Uniswap As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More with zero cost, but enough for profitable farmers.

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What is profitable farming Cryptocurrencies, as an alternative financial instrument, open up additional earning opportunities for users. Decentralized finance (DeFi) market participants decided to take advantage of this feature …. More, and how it works, read our exclusive material.

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Passion for sushi

Fork In the cryptocurrency world, a fork is essentially a change in the blockchain protocol. Since cryptocurrencies operate in decentralized networks, all parties … More of the Uniswap protocol, the so-called SushiSwap, is a new toy that is gaining popularity among liquidity farmers. The platform allows you to earn SUSHI governance tokens through staking of Uniswap v2 liquidity pool tokens. Some industry observers have called this phenomenon “vampire mining” as the project is effectively sucking liquidity from Uniswap. Ethereum developer Hayden Adams joked:

2017: Ethereum killers
2020: Uniswap killers

– Hayden Adams (@haydenzadams) August 28, 2020

On Uniswap, liquidity providers receive trading commissions from the pool only when actively providing liquidity. However, these profits will quickly disappear when the whales arrive with their tightly packed pockets..

The creators of SushiSwap claim to have broken the system. They give out SUSHI tokens to users, which will allow them to receive a percentage of the protocol fees, regardless of whether they are currently providing liquidity or not. During the first two weeks, for each block, a reward is paid in ten times, or 1000 SUSHI tokens, while the SUSHI / ETH pool receives an additional coefficient equal to two.

Image: SushiSwap

The 0.25% commission goes directly to active liquidity providers, and the remaining 0.05% is converted back to SUSHI and distributed among the token holders. The plan is as follows: take liquidity from Uniswap and, a couple of weeks after launch, transfer it to your automated market maker protocol.

“Once the migration is complete, the transformed liquidity will fuel the first sets of SushiSwap pools and kick off the protocol immediately. Stakers will not have to do anything, they will simply receive a reward for the provided liquidity in SUSHI tokens “.

Ten percent of all allocated SUSHI will be set aside for project development and protocol operations, including security audits. Now the protocol works without audit, which is very risky. Although the organizers claim that Quantstamp has agreed to conduct a review in the near future.

After the scam with Yam Finance, the crypto community is wary of such undertakings. The first red flag will be any administrative delay that will allow liquidity providers to exit the game prior to key changes.

“We have transferred administrative authority to the contract by blocking the time (timelock). Any call to the administrator function from the developer’s side will be processed with a 48-hour delay. “.

Messari researcher Ryan Watkins [@RyanWatkins_] noticed that 28% of all Uniswap liquidity has already leaked into SushiSwap.

Vampire mining could be the new fashion trend in the DeFi industry

28% of all Uniswap liquidity is staked in SushiSwap right now.

At $ 2.36 SUSHI SushiSwap is paying out ~ $ 15mm in rewards daily = ~ 13% daily yield

Remember after ~ 2 weeks all Uniswap LP tokens staked in SushiSwap will automatically migrate to SushiSwap – forking liquidity.

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– Ryan Watkins (@RyanWatkins_) August 28, 2020 reports that the SUSHI token is now worth about $ 2.65, although it was zero a day ago. Dashboard on Shows Users Already Provided $ 300 Million in Liquidity Amid New DeFi Mania.

DeFi Apps Total Locked Funds (TVL) Exceeded $ 8B

All this liquidity could have been stolen from Uniswap, but its own TVL has grown 30% in the last 24 hours. As a result, according to DeFi, Decentralized Finance (DeFi) is a financial services built on blockchain technology that offers users access to an open, efficient and … More Pulse, the total collateral value in the sector has reached a record $ 8.45 billion..

DeFi TVL –

Thus, over the past day, the cost of cryptocurrency collateral has increased by 15% or more than $ 1 billion. TVL in the DeFi sector has more than doubled this month alone, while total crypto market capitalization has only increased by 10% over the same period..

Aave remains the market leader, although its market share has dropped to 18.5% and TVL remains stable at $ 1.54 billion. In second and third places, respectively, Maker and Curve Finance, their position has hardly changed. The growth in the market is now mainly due to Uniswap, where vampire mining is gaining momentum..


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Vampire mining could be the new fashion trend in the DeFi industry
Vampire mining could be the new fashion trend in the DeFi industry
Vampire mining could be the new fashion trend in the DeFi industry

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