SIP-22 Remove SUSHI LP rewards 2/2/22


Discontinue SI/ETH liquidity provider rewards accruing on Sushiswap effective Wednesday, February 2, 2022.

The launch of the new Siren platform is currently planned for February. In conjunction with this launch, we expect to coordinate the launch of SI on an additional DEX.

Consolidating liquidity in a smaller number of exchanges will give our users the best depth in order to alleviate slippage in trading SI. The goal is to have one exchange per blockchain, e.g. Uniswap on Ethereum Mainnet, Quickswap on Polygon, TraderJoe on Avalanche.

Currently 35,000 SI tokens per week (approx. 5K SI per day) are being used to reward SI/ETH LPs on Sushiswap. This emission of 1.82MM SI per year represents ~7% of the available Foundation token treasury.

The deepest liquidity for SI on a DEX right now is on Uniswap, despite the fact that we are not providing any rewards to liquidity providers on Uniswap. Discontinuing rewards on Sushiswap will free up SI rewards for use in more strategic applications, namely providing incentives for activities that align with the growth goals for the platform.

This SIP proposes to remove Sushiswap rewards effective Wednesday, February 2, 2022.

1 Like

Makes sense to me! Let’s remove the SI rewards

Transition from farming season to moon season.

Agreed, we are overpaying for liquidity at the moment and maybe we can evaluate moving to a concentrated liquidity protocol in the future, where each SI will have a bigger impact on actual liquidity.