With this Smart Pools integration, users can now earn higher yields without having to manually rebalance their liquidity.
Decentralized finance (DeFi) network Steer Protocol has partnered with Sushi to integrate its innovative Smart Pools into the ecosystem.
According to the announcement, the collaboration aims to revolutionize liquidity management and provide a seamless experience for liquidity providers (LPs) within Sushi’s Concentrated Liquidity Pools.
Smart Pools now fully integrated into Sushi
The DeFi ecosystem relies heavily on LPs, but the challenges they face in generating returns are undeniable. However, Steer Protocol has launched its Smart Pools, an automated liquidity management (ALM) solution to address these challenges.
Sushi announced on November 9 that it has successfully integrated the Smart Pools directly into its user interface (UI) to enable LP providers to improve their capital efficiency with v3 Concentrated Liquidity Pools without the need for active liquidity management .
With this integration, users can now earn higher yields without having to manually rebalance their liquidity.
Both Steer Protocol and Sushi initiated the partnership in early June this year. The alliance will benefit Sushi users in many ways, including automatic compounding fees combined with higher rewards, increasing profits and minimizing risks for LPs, with up to 8.5x efficiency compared to higher version 2 fees in comparison to other ALMs.
Additionally, Steer Protocol offers Sushi traders less slippage and temporary losses.
“From an arbitrage perspective, we can place liquidity that looks like books on a centralized exchange, thereby capturing that price movement before it actually happens on-chain,” said Derek Barrera, founder of Steer.
Steer Protocol said it currently supports Sushi on Polygon, Arbitrum, Optimism and BNB Chain.
Sushi is trying to improve its tokenomics
As an ALM platform focused on concentrated liquidity, Steer Protocol has quickly risen into the rankings of the top ten protocols for liquidity management.
According to DeFillama, the protocol currently ranks ninth in total value lock (TVL). Meanwhile, the integration with Sushi comes as the DeFi protocol considers changes to its tokenomics. Jared Gray, Sushi’s “head chef,” has proposed adjustments to incentivize LPs to preserve their liquidity for longer periods of time. According to him, current tokenomics pays out over $100 million in issuance to LPs for every $300 million worth of TVL created.
In recent weeks, Sushi’s native token SUSHI has seen a notable price increase from $0.55 in mid-October to $1.26 in early November, demonstrating the positive market sentiment surrounding these developments.
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