SIMP #2

Sushi Improvement or Modification to the Protocol #2

Introducing Onsen, our new liquidity mining incentivization program, a replacement of our Menu of the Week initiative intended to bring positive long-term liquidity changes as well as ensure stability of our platform.

Bringing new liquidity onto our exchange, decreasing slippage, expanding our pool offerings and creating exciting synergistic partnerships with other DeFi projects. Onsen allows tokens that are voted to become accredited to participate in our liquidity mining program.

58 tokens pairs will be eligible to receive accreditation. Every 60 days, the accredited list is re-evaluated to ensure that there is maximum capital efficiency for the SushiSwap ecosystem.

Onsen has 2000 allocation points (AP) set aside for it. These AP are what determine how much of our new token emissions (SUSHI minting) are awarded to incentivized Onsen pairs, the same way we allocate rewards to the permanent menu.

So how do we decide what token deserves what percentage of rewards? And how do we ensure that it benefits both the project in question and SushiSwap’s protocol as a whole?

By using a new weighting method to ensure that accredited tokens receive allocation points proportionate to their market cap!

Out of the 2000 AP, MISO (Minimal Initial Sushi Offering) projects get to take part of a 200 AP reserve that will initially be reserved for 3 months.

The remaining 1800 AP are divided based on the market cap size of the applicant token. To keep this manageable, we have created 3 categories according to market cap size average;

Midcap (25m-100m Market cap)

13 pairs maximum 100 AP per pair Lowcap (25m-5m Market cap)

25 pairs maximum 20 AP per pair Gems (5m-1m Market cap)

20 pairs maximum 10 AP per pair We will make it easy for projects to contribute to a Joint Liquidity Mining contract in a few weeks by releasing a wrapped MasterChef contract where they will be able to distribute their own tokens in addition to Sushi. (Double the yield!)

As there are some projects already participating in a Joint Liquidity Mining initiative with us, or moving their liquidity to SushiSwap, we will accredit $AMPL, $zLOT and $SEEN tokens from the very beginning.

Applying to the Onsen program, applicants must send 1000 SUSHI or 2 ETH to be used in permanent, irrevocable liquidity provisioning in the SUSHI-ETH pool to ensure serious projects are partaking in the process.

This accounts for a total of 58 pairs, contributing a total of 58 000 SUSHI burned or 116 ETH locked in liquidity every 90 days (Note: For the first round the first 25 pairs to apply won’t have to contribute any fee), as specified per basic application requirements seen in the next section.

The rest of the original proposal can be consulted here : https://forum.sushiswapclassic.org/t/simp-2-onsen/1546

Current pairs who applied/eligible and will be reviewed :

ESD (Empty Set Dollar) CREAM AMPL OMG MKR DOUGH PICKLE BOR (BoringDAO) SFI (Saffron finance) oBTC ANT ICHI pieDAO index oneSUSHI SWAG (Swag Finance) ROPE MBBASED Badger zLOT Hegic PNK CVP YETI DFD DUSD DPI wNXM JRT SEEN DXD DIGG (badgerDAO rebasing token) UWL (uniwhales.io) INDEX ALEPH

None of the pairs are confirmed yet and an official medium article will be released once Onsen starts if approved.

All of these pairs could be incentivized based on MC for 60 days.

Reviewed based on performance and new application of projects incentives will stop or might be revised by community.

If the proposal is accepted we will gather applications via a form available on sushiswap.fi

Founding team of projects can contact 0xMaki to be added unofficially in the meantime.

DAOs can contact 0xMaki if there is a special process for their token to move liquidity.