What Makes SashimiSwap 2.1 Special: ‘Multiplying’ the income for liquidity providers (LP) in AMM.

Since the launch of SashimiSwap, the aelf developer team has been updating Sashimi in order to make it more powerful and stand out from other DeFi projects.

Why SashimiSwap?

The core of SashimiSwap 2.1 is to ‘multiply’ the income for the liquidity providers (LP). SashimiSwap Investment multiplies users’ investment returns and earns additional income by optimally and automatically investing part of the idle liquidity in the most profitable platform(s), automatically adjusted every day.

Unique Asset Investment Management

According to the product upgrade timeline, Sashimi has made a leap from a liquidity mining platform to a decentralized exchange with AMM mechanism to earn additional income for users through Investment and Vaults.

However, many users still don’t know what makes Investment special, so this article will focus on SashimiSwap Investment.

Highlight of Investment : Multiplying LP’s total income

This is the first smart contract that maximizes the use of idle funds in a liquidity pool. The contract will invest and manage the assets (such as ETH, DAI, GT, etc.) of LP into the pool through different DeFi products, so as to increase the LP’s earnings.

Today, about $10 billion of liquid assets are sitting idle on all DEXs, of which Uniswap accounts for $2.8 billion. The purpose of SashimiSwap Investment is to let these idle assets enter the safe financial market and earn extra and higher profits for LP.

Buy Back + Burn, Rebuilding Sashimi Deflation Model

The profits from SashimiSwap Investment will be used to buy back SASHIMI. According to the latest tokenomics model, 25% of SASHIMI will be sent to the Sashimi Bar after the buyback, and the remaining 75% will be sent to the Timelock address or Sashimi Treasury. (Before 6 October, 75% of SASHIMI entered the SASHIMI Bar and 25% was burnt). Liquidity providers can stake SASHIMI token in Sashimi Bar to receive the earnings, while being able to redeem the staked SASHIMI at any time. After that, the community will vote on how many assets in the Sashimi Treasury will be sent to the Marketing Fund or be burnt.

As you can see, SashimiSwap’s homepage clearly shows its capital flow. The total supply of SASHIMI tokens is 99,961,865.89. Since the launch of SashimiSwap Investment, 38,134.11 SASHIMI have been burnt as of 14 October, and 107,719.51 SASHIMI have entered the Sashimi Treasury. Within just 15 days, the amount of SASHIMI (296,162.453) has accounted for 0.3% of the total SASHIMI from farming.

Strong Technical Architecture Derived from Uniswap

Generally speaking, SashimiSwap (sashimi.cool) is a Uniswap-inspired investment platform dedicated to ‘multiplying’the income for liquidity providers. To that end, the aelf developers built a unique and revolutionized technology implementation that can use the funds in the liquidity pool to make automatic investment.

Whereas most other platforms primarily rely on transaction fees, SashimiSwap also multiplies users’ investment returns by optimally and automatically investing part of the idle liquidity in the most profitable platform(s), automatically adjusted every day. If likened to a foreign exchange, then SashimiSwap is depositing its idle assets into the bank to earn interest.

SashimiSwap’s Core Components

SashimiSwap Core Products：

• SashimiSwap Exchange: AMM-based decentralized exchange (idle funds will be invested using SashimiSwap Investment).
• Sashimiswap Investment: a built-in asset management platform on the Exchange that invests idle funds through different financial products.
• SashimiSwap Farms: a liquidity mining platform used for liquidity incentive with a new “double farming” feature https://sashimi.cool/farms
• SashimiSwap Vaults: an aggregate financial platform that invests the assets staked by users through different platforms.
• SashimiSwap Proposals: Governance Platform https://snapshot.sashimi.cool/#/sashimi

An integrated financial platform

Users can swap tokens and add / remove liquidity on the Exchange. You can get the corresponding SALP token for adding liquidity. At present, all of these transaction fees are used as the profits for liquidity providers (LP). The transaction fee for swapping on SashimiSwap is 0.3% of the transaction value. Then, 5/6 of the transaction fees will be distributed to liquidity providers, the remaining 1/6 will be sent to Sashimi Bar. The Investment platform will invest part of the assets added by users in the liquidity pool. After the profits are used to buy back SASHIMI, 25% of the SASHIMI will enter the Sashimi Bar and 75% will enter the Treasury. At the same time, users can stake the SALP token for farming and get SASHIMI reward. Users who hold LP token of other platforms such as Uniswap can also stake them into LP Token Bar for double farming and earn double rewards.

SashimiSwap Vaults can be regarded as an aggregate financial management platform. The Vaults invest assets staked by users in other DeFi products. The contract behind the Vaults will continuously select DeFi platforms with the highest yield to ensure maximum returns (such as AAVE, compound, YFI, Synthetix, etc.). Users only need to deposit the corresponding UNI-V2 Token, DAI, ETH and USDC into the pool of SashimiSwap Vault to obtain the svUNI-V2 Token, which can be used as staking voucher for users adding assets to the Vault. The Vault’s profits will be distributed to users in proportion to their staking.

Through the interaction between the components above, SashimiSwap constructs a complete DeFi integrated platform. Users can play the roles of traders, liquidity providers and investors in the SashimiSwap ecosystem.

Community Governance Model

SASHIMI Token Holders have Governance Rights

Sashimi has always been committed to community governance and has built a voting platform from the beginning. Users need to use the SASHIMI-ETH SALP Token obtained from adding liquidity (i.e., sashimichakra). Any user can add a proposal on the platform, and any user holding sashimichakra can vote for or against the proposal. The voting period is unlimited and the default period is three days, with one token equaling one vote. The proposal will be passed after the voting participation rate reaches 30% and the Yes votes reach 60%.

The governance token SASHIMI is distributed through liquidity mining, without any pre-sale, pre-mining and team shares. The release of token rewards will be carried out according to the inflation model, and the total amount will be capped at 100 million. Currently, each block releases 10 SASHIMI.

As mentioned above, 75% of the Investment’s profits and a 4.5% performance fee of the Vault’s profits will go into the Sashimi Treasury, and part of them will be sent to the marketing fund to encourage and support community building. The proposal for community-building budget, including Mining Incentive Plan, Community-buidling and Project Cooperation, also requires community voting before funding can be obtained from the Marketing Fund. This also fully reflects that SASHIMI token has great governance rights, therefore its value is unlimited.

SASHIMI Token Holders Can Share Out the Profits

In addition to participating in governance, SASHIMI tokens can also get earnings. When users stake SASHIMI token in SashimiBar, they will receive the corresponding xSASHIMI token, which can be used to redeem 0.05% of the transaction fee share and Investment profit share. Other users who hold SASHIMI can also obtain profits by staking SASHIMI.

Recently, Sashimi has been holding the election of Community Governance Committee. In the future, Sashimi will create multi-sig wallets and others, so as to realize absolute community governance.