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Learn about Sushi Staking
How to stake SUSHI?
There are several ways to earn a return on your SUSHI, including lending them out to custodial providers or through decentralized lending protocols, supplying liquidity by farming SUSUHI on SUSHi Earn, or staking them via SushiBar.
For the best security and control over your funds, we recommend using a Ledger Hardware Wallet or MetaMask Wallet to store your SUSHI tokens. The steps to follow are as follows:
Step 1: SushiSwap is undergoing a revamp of its token economics through the governance proposal. Currently, you can only stake SUSHI via SushiBar using this direct link. Go to the site and connect to your wallet.
Step 2: Under ‘Stake SUSHI’, input the amount to stake, and click on ‘Approve’ to confirm the approval in your wallet.
Step 3: Once approved, click on “Confirm Staking” to finalize the transaction in your wallet.
Do I need to maintain my staking in any way?
Once you have staked your SUSHI, there are things you need to consider going forward:
- When your SUSHI is staked into the SushiBar, you receive xSUSHI in return for voting rights and a fully composable token that can interact with other protocols. Your xSUSHI is continuously auto-compounding, when you unstake you will receive all the originally deposited SUSHI and any additional fee rewards.
- You can find details about the performance of xSUSHI and other more detailed analytics on the xSUSHI page under the Analytics tab at the top.
- Claiming your rewards is a simple process that can be done at any time via the above staking section by clicking on “Unstake.” When you stake SUSHI, you’ll earn additional xSUSHI tokens that accumulate over the staking period. By claiming your rewards, you’ll convert the xSUSHI into regular SUSHI tokens, unstake your original stake, and receive the accumulated rewards in the form of SUSHI.
- By staking SUSHI tokens, you will have the opportunity to vote on Governance Proposals. While your contribution and vote are highly valuable to the protocol, it won’t affect your rewards directly.
How are the rewards generated?
Native staking rewards on SUSHI are composed of:
Swap Fees: Staking SUSHI tokens has been a popular way for stakers to earn rewards in the form of xSUSHI tokens, which are proportional to the staker’s share of the SushiBar and accumulate 0.045% of the swap fees generated on the exchange. But a recent proposal has brought a change to this system. The community has agreed to divert 100% of fees to the Treasury for a year or until new tokenomics are implemented. This means that stakers will not receive staking rewards during this period. It’s also possible that the xSUSHI tokens will only receive emission-based rewards upon the implementation of new tokenomics, according to this proposal. This move is aimed at returning SushiSwap’s fiscal resources to a competitive level.
What are the risks of staking SUSHI?
We strive to make staking as safe and transparent as possible, however, it’s important to consider factors that may influence whether a particular staking option is appropriate for you.
- Unbonding risk: Currently, there is no lock-up period requirement for staking SUSHI tokens. However, a proposal for a tiered time-locking system, offering greater rewards for longer staking periods, is under consideration. The specifics regarding any penalties for early unstaking before the maturity date have yet to be determined. It is crucial to stay informed about the outcome of the proposal and any modifications to the design of SUSHI token economics.
- Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs, this risk applies not only to staking but also the investment in SUSHI.
Please note that this is not an exhaustive list of all the risks related to staking.
What is SUSHI?
SUSHIis the native token of the SushiSwap protocol and it is used to perform various important functions within the platform.
- Staking: Staking SUSHI tokens not only provides the opportunity for SUSHI holders to earn additional rewards, but also contributes to the security of the network.
- Governance: SUSHI tokens serve as the governance token for the SushiSwap protocol, but only SUSHI-ETH liquidity providers or SUSHI stakers have voting rights. To be eligible to vote on governance proposals, a user must have SUSHIPOWAH. SUSHIPOWAH acts as the voting metric, with each SUSHI in the SUSHI-ETH pool equating to 2 SUSHIPOWAH and each SUSHI held via xSUSHI (by staking) equating to 1 SUSHIPOWAH. For a governance proposal to pass and become binding, it must receive support from a quorum of at least 5 million SUSHIPOWAH.
What are the tokenomics of SUSHI?
SUSHI has a hard cap of 250 million tokens, which is voted by the community. New Sushi is created at 100 SUSHI per block for tokens that are staked in the farms on sushiswapclassic.org/farms. There is currently no fee burn mechanism on SUSHI. Currently, the protocol is going through a revamp of new tokenomics and you may find the latest proposal here.
Initial Token Distribution Breakdown
With reference to Ethereum block #10,750,000, the minting of SUSHI tokens commenced with an initial supply of zero. The newly minted SUSHI, with a 10% deduction for development allocation, is distributed among those who provide liquidity to the protocol.
The distribution of SUSHI is divided into two phases:
- Liquidity Mining Phase – During the first 100,000 blocks, which is approximately 2 weeks, 1000 SUSHI will be minted per block and distributed among stakers of Uniswap LP tokens from approved pools.
- Post-Launch – Following the liquidity mining phase, 100 SUSHI will be minted per block and distributed among the holders of SushiSwap LP tokens, i.e. the liquidity providers to the protocol.
Who are the team members behind Sushi?
The pseudonymous founder of the protocol is Chef Nomi.
The Multisigs are the ultimate decision-makers in the SushiSwap ecosystem.
The Treasury Multisig wallet is comprised of 9 prominent and trusted members of the DeFi/Ethereum ecosystem, and they must approve any use of the devfunds. A transaction requires at least 6 out of 9 signatures to pass and be executed.
Signers of Treasury Multisig:
@SBF_Alameda, @rleshner, @0xMaki, @lawmaster, @cmsholdings, @mattysino, @mickhagen, @JiroOno, @zippoxer
The Ops Multisig is primarily comprised of core team members and is the hurdle that needs to be passed for any changes to our smart contracts. Any transaction to be executed requires at least 3 signatures out of 5.
Signers of the Ops Multisig (Twitter handles):
@0xMaki, @LevxApp, @OmakaseBar, @JiroOno
From the Staking Rewards Journal