SushiSwap to Propose Tokenomics Changes to Promote Adoption of DEX Upgrade

Changes to the protocol’s “Chef” contracts are intended to make the protocol more decentralized and secure. 

AccessTimeIconApr 26, 2023 at 5:51 p.m. UTC
Updated May 24, 2023 at 4:19 p.m. UTC

SushiSwap, a decentralized exchange (DEX), is one step closer to adopting a new tokenomics model that will promote its adoption of Uniswap version (v)3.

The model will probably go to a community-wide vote in late May, Head Chef Jared Grey told CoinDesk. The changes, if approved, will include overhauling the protocol’s “Chef” contracts to improve the code that underpins its activities following a multimillion-dollar hack earlier this month.

“V3 helps us make tokenomics more efficient [and] vice versa. With v3’s improved capital efficiency and improved and sustainable tokenomics, we will scale growth across our more than 30 supported networks,” Grey said.

The changes will also increase decentralization, improving the protocol’s security, Grey told CoinDesk.

The exchange is attempting to beef up security in the wake of the exploit, which drained $3.3 million from the platform’s wallets earlier this month. The hack exploited a vulnerability in SushiSwap's Route Processor 2, a smart contract component that aims to execute trades more efficiently while boosting liquidity provisions. Some funds have since been recovered.

SushiSwap has patched the bug, and has stealthily introduced v3 of its router on some networks to support v3 adoption, Grey tweeted. The router will launch on more networks soon.

SushiSwap’s team also plans to roll out a series of changes to the protocol’s interface that aim to facilitate cross-chain swapping, according to Grey’s tweets.

The sushiswap (SUSHI) token is trading at $1.08, up 5.4% in the past day, CoinGecko data shows. The price has increased by roughly the same percentage over the past month.

Edited by Sheldon Reback.


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Elizabeth Napolitano

Elizabeth Napolitano was a news reporter at CoinDesk.