Home Altcoins News Sushi Swap Liquidity Pools Yield Farming and Profits Made Easy For All

Sushi Swap Liquidity Pools Yield Farming and Profits Made Easy For All

Sushi Swap

Sushi Party, Circle Snail, Donald Dai, YFI Whale, Tether Turtle, Toadie Marine, Synthetic Snake, Compound Truffle, CRV crocodile, Spartan Dollar, Band-Osaurus, REN Rhino, Umami squid are the liquidity pools on Sushi based on Ethereum.

The Reward type in all these pools is Sushi. All of these liquidity pools have high impermanent loss with 0.04% through 0.13% daily APY and the Yearly APY ranging from 14% through as high as 29.70% Yearly APY.

Each of these pools offers different pairs like SUSHI-ETH, USDC-ETH, DAI-ETH, YFI-ETH, USDT-ETH, LINK-ETH, SNX-ETH, COMP-ETH, CRV-ETH, SUSD-ETH, BAND-ETH, ren-ETH, and UMA-ETH.

Each of these pools have values locked anywhere from $11,672,165.85 through $594,438,344.68.

For clarity, Liquidity pools are places where users pool tokens.  The pooling of tokens is sometimes known as liquidity.  Thus, users will be able to can use them to make trades in a decentralized way.

The Liquidity pools are created by users and decentralized apps who are interested in making profits by using the liquidity from the pool. 

To create a liquidity pool or be a part of the liquidity pool, the amount which a user contributes should be equally divided between two coins.  The primary token is known as the “quote token,” and the base token is mostly ETH or a stable coin.

This SushiSwap’s liquidity pools permit anyone to provide liquidity at the Sushi Exchange.

Users who provide their liquidity will receive SLP tokens, also known as “SushiSwap Liquidity Provider Tokens.”

For example, a user who deposits $SUSHI and $ETH into a particular liquidity pool will get the SUSHI-ETH SLP tokens. These tokens are representative of the proportional share of the pooled assets. This token permits the users to reclaim their funds at any point in time.

“Every time another user uses the pool to trade between $SUSHI and $ETH, a 0.3% fee is taken on the trade. 0.25% of that trade goes back to the LP pool.”

For clarity on how to profit from Sushi Swap as published in the docs:  “The value of the SLP tokens, which represent the shares of the total liquidity each pool, is updated with each trade to add their value relative to the tokens the pool uses to trade. If previously 100 SLP tokens were representing 100 ETH and 100 SUSHI, each token would be worth 1 ETH & 1 SUSHI (note in this example, ETH and SUSHI are the same relative value). If a user were then to trade 10 ETH for 10 SUSHI in that pool, and another user were to trade 10 SUSHI for 10 ETH, then there would now be 100.025 ETH and 100.025 SUSHI. This means each LP token would be worth 1.0025 ETH and 1.00025 SUSHI now when it is withdrawn.”

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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