PancakeSwap Offers SUSHI Liquidity Incentives Ahead of SushiSwaps BentoBox Release

The SUSHI liquidity pools on PancakeSwap are a huge positive to the entire De-Fi community, promoting interoperability and easy De-Fi access.

By
Ujay
on
February 26, 2021
Category:
Breaking News

SushiSwap Liquidity Incentives

Sushiswap is an AMM DEX on the Etherum network that plans to bridge its latest BentoBox feature to the Binance Smart Chain. PancakeSwap has anticipated the team’s launch and is now providing BEP-20 SUSHI holders with CAKE liquidity incentives. These features are fascinating as more protocols begin bridge to the BSC, and we begin to see more nuanced liquidity pairs. The SUSHI liquidity pools on PancakeSwap are a huge positive to the entire De-Fi community which this article outlines. On top of this, SushiSwap's soon-to-launch BentoBox lending protocol will soon be available on the BSC providing further cross-chain interoperability. It is important to note that this is not a partnership between the two, solely incentivized liquidity subsidized by PancakeSwap(PCS) in anticipation of the BentoBox lending release.


PancakeSwap Liquidity Pools

AMM's introduced liquidity pools as a substitution to traditional order books used by centralized exchanges. Order books serve as a peer-to-peer marketplace facilitated through a centralized entity allowing users to trade cryptocurrency pairs. In the case of liquidity pools, no order book is needed as the technology relies on a market-making algorithm and game theory to maintain accurate prices. Typically liquidity providers on these platforms receive additional incentives for making the market.

The PancakeSwap team has incentivized BEP-20 SUSHI liquidity allowing users to earn amazing APY's (Annual Percentage Yields) through providing liquidity or staking SUSHI. Currently, users who provide liquidity to the SUSHI/ETH pool will earn 160% APY.

For those who are unfamiliar with AMM’s, and yield farming check out the following articles:

Cryptonomics: Automated Market Makers

Cryptonomics: Yield Farming Explained


Syrup Pools?

Last week a poll was conducted regarding a new token to be added into the Syrup pools. As SUSHI obtained the highest number of votes a syrup pool has been rectified. This syrup pool is different from the regular staking. Usually, you stake CAKE, but PCS has subsidized the pool allowing users to earn CAKE from staking SUSHI. As these liquidity incentives are limited, the team has capped the syrup pool to fifty SUSHI per wallet.

Here is the sushi BSC contract address https://www.bscscan.com/token/0x947950bcc74888a40ffa2593c5798f11fc9124c4


Why Provide SushiSwap Liquidity Incentives?

Aside from the fact that the community voted for these liquidity incentives, PCS can benefit from the added SUSHI liquidity. These farming rewards allow Ethereum based users to easily migrate their SUSHI LP's to the BSC to earn potentially higher yields alongside lower transaction fees. In return, this bootstraps more users and liquidity to PCS, ultimately helping the protocol. It is also important to note that PCS is rooting itself as one of the leaders in ETH bridged liquidity on the BSC. They have done this by providing pools such as COMP/ETH and SUSHI/ETH, with many more on the way. Overall this further strengthens PCS's role in the BSC ecosystem as they continue to maintain the best liquidity for most BEP-20 token pairs.


BentoBox

Bentobox is a lending platform similar to Venus, Crean, and Aave. BentoBox innovates further in attempts to cut out significant limitations faced by crypto lenders:

  1. Creating isolated lending pairs so anyone can make any pair match up to their needs, and it is all up to users to bear the burden of the risk. It also gives room for users to supply a different variety of collateral and borrow other assets.
  2. Flexible oracles for both on-chain and off-chain assets consisting of initial 2 basic oracles. 
  3. Optimized contracts with low gas fees allow users with little funds to participate in the supplying process.
  4. Assets supplied can be used for flash loans bringing extra revenue for suppliers.
  5. Specific targets on liquid interest rates


Concluding Thoughts

Pancakeswap is the largest AMM on the BSC, and they continue to innovate rapidly. Their latest release features SUSHI/ETH liquidity pools that allow users to receive ETH-based De-Fi exposure while utilizing the BSC's low transaction fees. To further incentivize the liquidity, the team at PancakeSwap has created both a syrup and farming pool allowing users to earn generous yields. Overall seeing more cross-chain interoperability between the BCS and ETH is great for De-Fi as a whole. Further interoperability is on the way, reducing ETH network congestion while simultaneously allowing users to access ETH-based De-Fi with nominal fees on the BSC. I am beyond excited for the launch of Bento Box and the many other ETH-based projects soon to be supported on the BSC.

For those who wish to check out PancakeSwap and SushiSwap check out their social media and websites below:

SushiSwap Website

SushiSwap Twitter

PancakeSwap Website

PancakeSwap Twitter


Tags:
No items found.
Ujay

Ujiri Kelvin Atahine Is a native Nigerian who is pursuing crypto research and writing. Ujay describes himself as a, foodie, crypto enthusiast, and overall, a display of exceptional character.