SushiSwap Onsen for YGG Token Holders

Looking for a way to earn extra rewards with your YGG tokens?

YGG token holders can now receive rewards on SushiSwap’s Onsen platform by providing liquidity for the platform’s YGG/WETH pair. Rewards come in the form of SUSHI and YGG tokens, and are distributed relative to the amount of YGG/WETH liquidity pool tokens staked.

A total of 500,000 YGG tokens will be distributed as a reward for participating in the Onsen liquidity pool. A maximum of 182.7 SUSHI and 5,556 YGG tokens will be distributed proportionally among the stakers per day, with the pool running for 90 days.

According to the documentation provided by Sushi, Onsen is a “liquidity provision reward system for tokens that are relatively new.” The offering of SUSHI rewards by Onsen is a way to incentivize token holders to provide liquidity to projects in their early stages, when they need it the most. This incentivization frees projects from the burden of having to constantly monitor liquidity, giving them time to work on more crucial aspects of business. As such, the Onsen platform is a perfect fit for the YGG token.

Projects selected for inclusion into Onsen are carefully vetted by SushiSwap and assigned a number of “allocation points” which are used to determine SUSHI rewards to be given per block. A few of the benefits of a token’s participation with Onsen include:

• introducing new sources of liquidity to SushiSwap,
• decreasing slippage during token order placement, and
• developing partnerships with other DeFi projects.

For YGG token holders, liquidity provision programs like Onsen are a great way to put idle YGG tokens to use, especially while waiting for the YGG DAO vault programs to come online. Interest rates for Onsen pairs tend to be fairly high and rival those of other popular DeFi platforms.

Onsen trading pairs exist separately from SushiSwap’s permanent farms, which are reserved for “OG tokens,” according to a Sushi Medium article. The article also states that SUSHI rewards for contributing to the YGG/WETH trading pair will be periodically adjusted based on trading volume and other factors.

To view the full list of Onsen pools currently available at SushiSwap, check their list of yield farms.

To learn more about YGG token, please read the YGG DAO whitepaper. Join the YGG Discord or follow us on Twitter for future updates.