Where do the returns from liquidity mining come from? Don’t worry, your class rep is here to explain:
In 2020, SushiSwap offered SUSHI rewards to encourage Uniswap liquidity providers to move their liquidity over. This practice is commonly known as a “vampire attack.”
Reward tokens are created through new issuance. If most recipients sell their rewards, the token price often comes under pressure, and the annualized return measured in token price falls accordingly.
There’s no homework for this lesson, but the market can give you a pop quiz at any time.
$SUSHI 0.1723（+0.88%）
#SUSHI
In 2020, SushiSwap offered SUSHI rewards to encourage Uniswap liquidity providers to move their liquidity over. This practice is commonly known as a “vampire attack.”
Reward tokens are created through new issuance. If most recipients sell their rewards, the token price often comes under pressure, and the annualized return measured in token price falls accordingly.
There’s no homework for this lesson, but the market can give you a pop quiz at any time.
$SUSHI 0.1723（+0.88%）
#SUSHI