The dealer is too dog-like 😖

In the continuously evolving wave of decentralized finance (DeFi), SushiSwap has always been one of the most notable projects. The launch of its Sushi 2.0 version brings a brand-new economic model aimed at optimizing the platform's operational mechanism, enhancing user experience, strengthening liquidity provider incentives, and ensuring the platform's sustainable development. This article will delve into various key elements of the SushiSwap Sushi 2.0 version economic model and its potential impacts.
1. Core Concepts and Mechanisms
(1) Liquidity Pools and Token Incentives
SushiSwap 2.0 continues the trading model based on liquidity pools, where users provide funds to different trading pair liquidity pools to become liquidity providers (LPs). To attract and retain LPs, the platform issues SUSHI tokens as incentives. In version 2.0, the distribution mechanism for token incentives has been optimized, focusing more on long-term liquidity stability. For example, a progressive reward distribution strategy is adopted, granting different proportions of SUSHI token rewards based on the duration and scale of LPs' liquidity provision, avoiding the negative impact of short-term speculative liquidity inflows and outflows on platform trading depth and price stability.