- Sushi Labs intends to increase the liquidity of the DEX by managing SushiSwap through a council structure.
Decentralized trade The protocol’s decentralized autonomous organization (DAO), formerly known as SushiSwap, has been rebranded as Sushi Labs, an independent business. SushiSwap will continue to be used for its DEX-focused operations.
Under the moniker Sushi Labs, SushiSwap has unveiled a new business plan designed to tackle the company’s declining growth and cash flow problems. The redesigned framework substitutes a council structure akin to Synthetix, the derivatives protocol, for the decentralized autonomous organization (DAO).
The Sushi High Kitchen, the Treasury Council, the Grants Council, and the Ambassador Council will oversee the operations of Sushi Labs. Six to eight people will make up the High Kitchen, which would act as the main governance body in charge of managing a multisig transaction arrangement.
The managing director of Sushi Labs, Jared Grey, stated that the Sushi DEX will have more liquidity thanks to the increased budget, organizational structure, and utilization of popular technologies like Route Processor.
In addition, a change to a multitoken product suite is part of the move, which according to Sushi will help spread product costs and give token holders greater opportunity for rewards.
While the move’s centralization has sparked debate and criticism—some community members have even accused the protocol of a hostile takeover—Sushi maintains that the changes are necessary to address financial challenges and improve liquidity management.
The decentralized exchange earned $1.62 million in fees in May 2023, a considerable drop from its performance during the last bull cycle.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
