Sushiswap has successfully migrated its liquidity away from Uniswap and the current numbers are interesting.
Data shows that there’s currently around $1.3 billion of liquidity locked in Sushiswap where Uniswap only has around $400 million.
SushiSwap Completing Migration
Sushiswap, the Uniswap fork that took the DeFi space by a storm, has successfully completed its liquidity migration. The protocol is currently working on its own where liquidity providers no longer stake in Uniswap.
The process took a few hours and was spearheaded by the CEO of the popular cryptocurrency derivatives platform FTX, Sam Bankman-Fried.
The user interface of Sushiswap is also ready as the new site is working as of yesterday. On a closer look, it does seem like a copy/paste Uniswap website with a different color scheme. Of course, that’s to be expected from a forked protocol.
According to sushiswap.vision, the total liquidity locked in the protocol currently sits at around $1.34 billion, whereas Uniswap currently has about $400 million of liquidity locked in it.
Of course, that’s not the only metric to consider as Uniswap’s volume, as well as the overall token count is miles away from that of the recently launched fork.
A lot of industry experts are also speculating that liquidity will be pulled away from Sushiswap as soon as the incentives stop.
2 Million SUSHI Airdrop Incoming
Another thing to consider is the incoming airdrop of 2 million SUSHI tokens. They will be distributed to people who held on during the migration period, as CryptoPotato reported yesterday.
Commenting on the matter of liquidity transition was the founder of the popular DeFi protocol Yearn Finance, Andre Cronje.
I don’t have a horse in this race, but I do like accurate data. The narrative that SushiSwap took TVL from Uniswap is simply false. Uniswap TVL pre/post Sushiswap remains unchanged. Sushiswap simply took their liquidity locusts with them. Only the liquidity locusts win.
Yet, a point was brought that Sushiswa rode off Uniswap liquidity to create a competitor with much greater TVL. Cronje responded that it’s important to wait for data until after “incentives stopping. Right now the “success” is being subsidized. Liquidity has no loyalty.”