Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
SushiSwap dissolves DAO, repositions as Sushi Labs with new council structure

SushiSwap dissolves DAO, repositions as Sushi Labs with new council structure

Cryptobriefing2024/06/11 18:04
By:Vince Dioquino

Decentralized exchange SushiSwap has rebranded as Sushi Labs, an autonomous company replacing the protocol’s decentralized autonomous organization (DAO), although the SushiSwap name will still be used for its DEX-focused operations.

In a bid to address slowing growth and liquidity issues, SushiSwap has introduced a new business model under the name Sushi Labs. The revamp replaces the decentralized autonomous organization (DAO) with a “council structure” similar to that of derivatives protocol Synthetix.

Sushi Labs will operate under four councils: the Sushi High Kitchen, the Treasury Council, the Grants Council, and the Ambassador Council. The High Kitchen, comprising six to eight members, will serve as the central governing body overseeing a multisig setup for transactions.

Jared Grey, now Sushi Labs’ managing director, asserted that the new organizational structure, budget, and leveraging of successful products like Route Processor will help enhance liquidity on the Sushi DEX.

“Many attribute Sushi’s stagnated growth and AMM liquidity issues to LPs migrating to other DEXs and seeking better yield. However, with our newly established organizational structure, sufficient budget, and leveraging successful products like Route Processor, we have the tools to enhance liquidity on the Sushi DEX,” Grey explains.

The transition also involves a shift to a multitoken product suite, which Sushi claims will help distribute product costs and provide more reward opportunities for token holders.

While the move has sparked debate and criticism for its centralized nature, with some community members accusing the protocol of a hostile takeover, Sushi maintains that the changes are necessary to address financial challenges and improve liquidity management.

The decentralized exchange generated $1.62 million in fees in May 2023, a sharp decline compared to its performance during the previous bull cycle.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin

MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.

The Block2024/11/21 16:11

Gold loses luster as institutional demand fuels bitcoin price surge, analysts say

Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.

The Block2024/11/21 16:11

SEC is 'engaging' Solana ETF applicants: report

SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.

The Block2024/11/21 16:11