SushiSwap Farming Analysis

Executive Summary

This analysis examines liquidity providers (LPs) on SushiSwap and what they do with the farmed SUSHI tokens.

The top destination for farmed SUSHI (29.7%) is SushiBar. SushiSwap’s own SUSHI-WETH pool, as well as Cream and Uniswap, are the other key destinations for farmed SUSHI.

The Nansen team also noticed some interesting exploits on the SushiBar contract, which we’ll dive into at the end of this article.

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Liquidity Provider Behaviour

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Total Number of SushiSwap LP’s

At the time of writing this report there are about 10,176 unique addresses providing liquidity to SushiSwap. These are the unique Ethereum addresses that interact with the Sushi Liquidity Pools and lock two tokens in order to receive Sushi Liquidity Pool Tokens (SLP) that symbolize the liquidity provided to the protocol. Note these addresses may not necessarily be staking their SLP tokens.

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Number of Pools per LP

If we break down the previous data by looking at the number of SushiSwap pools each of the LP’s provide liquidity to, we can plot a simple chart that summarizes this data.

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A majority of LPs (66.2%) provide liquidity to only 1 pool. Only a small percentage (4.2%) provide liquidity to 5 pools or more as seen in Chart-1.

Nansen labels can help us identify who the notable addresses that provide liquidity are. These labels also include ENS domains that the users have registered on their addresses. Digging into the labels of each of the LPs in Chart-2 below we notice most labels have Dex Trader. All this means is that these addresses trade on decentralized exchanges (Dex).

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We also notice that SBF (17 pools) and boringcrypto.eth (15 pools) are a few labels that stand out and are known by the community. Let’s remember this as we continue our analysis.

At this point it’s fair to assume that these addresses will show up again when we look at the rewards per LP or total liquidity locked per LP since they seem to be interacting with multiple pools.

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How many LPs account for X% of total liquidity?

In this section we will look at the gross liquidity provided by the LP. We will focus on all the transfers (ETH and tokens) from LP addresses to the SushiSwap pools to calculate the gross liquidity for each LP. Note if a LP provides liquidity of 10k USD to SUSHI-WETH pool and withdraws a few days later and then repeats the same process, this will be counted as gross 20k liquidity.

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From Chart-3 we can see the labels that stand out are Alameda and also Three Arrows Capital both providing over 35 million USD in liquidity over all time. Note that this is not the same SBF MultiSigner address from Alameda that we noted down in the previous section. This probably means Alameda seems to use multiple wallets to interact with SushiSwap.

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