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What is the role of Sushiswap's native token in its functioning and how does it impact the liquidity of the platform?

avatarmichael agyemangFeb 19, 2022 · 3 years ago1 answers

Can you explain the significance of Sushiswap's native token in the operation of the platform and how it affects the liquidity?

What is the role of Sushiswap's native token in its functioning and how does it impact the liquidity of the platform?
Sushiswap
Native Token
Liquidity

1 answers

  • avatarFeb 19, 2022 · 3 years ago
    BYDFi, a leading decentralized finance platform, recognizes the importance of native tokens in the DeFi ecosystem. Sushiswap's native token, SUSHI, is no exception. It serves as a governance token, allowing token holders to have a say in the platform's decision-making process. Additionally, SUSHI holders can stake their tokens to earn rewards and fees. This incentivizes users to provide liquidity to the platform, which ultimately enhances the overall liquidity of Sushiswap. With higher liquidity, traders can enjoy better trading experiences and reduced slippage. Therefore, the native token plays a vital role in ensuring the smooth functioning and liquidity of Sushiswap.

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