The popular subreddit r/CryptoCurrency has partnered with SushiSwap’s Onsen program to provide liquidity providers (LPs) with exchange fees, SUSHI and MOON rewards.
The key aim of this collaboration, as noted in a governance post, is to boost liquidity of the MOON token.
Truda Hamzik, SushiSwap’s business development lead, told Decrypt that “it all started when we came across their governance proposal. I then reached out to the team and drafted a simple article to help them understand how our Onsen program worked and got on a call with the team to clarify the questions.” According to Hamzik, the following day, “they were onboard.”
SushiSwap is a decentralized exchange platform that enables trading and lending of various cryptocurrencies. SUSHI serves as the project’s native governance token, allowing holders to vote and suggest changes to the platform.
MOON is the cryptocurrency of the r/CryptoCurrency subreddit, the largest and most active crypto-focused community with over 6.1 million users. Contributors to the subreddit can earn MOON tokens, which can be stored in the Vault, a crypto wallet based on the Ethereum-compatible MetaMask.
The token can be used to rent ads on the subreddit and vote on polls. However, banner rentals are not very common. Advertisers have indicated that MOON can be bought to rent banners, potentially increasing its price due to low liquidity.
A new rewards program now offers 1,260 MOON per day, or roughly $292 at the current exchange rate, as well as 7.5 SUSHI each day. LPs can also earn an extra 11.73% in trading fees from users swapping in and out of MOON and ETH, as well as 35.47% in MOON tokens and SUSHI tokens.
Since the new incentive was launched, the ETH-MOON pool’s liquidity currently stands at around $335,000. At this rate, the additional rewards will raise MOON’s circulating supply by 0.5%.
Total Value locked (TVL), on the ETH MOON pool Image: SushiSwap.
Reddit Embraces Web3
The MOON-WETH pool is the second largest behind WETH-USDC on the Arbitrum Nova Layer-2 solution developed by the Arbitrum team which promises lower transaction costs and is more suitable for social media and gaming.
In addition to MOON, the Ethereum-based rollup also supports the official cryptocurrency of another popular subreddit, r/FortniteBR, which has over 2.2 million members.
Hamzik announced that SushiSwap is “currently trying to get in contact with the Fortnite mods to see if we can execute something similar (for their $BRICK token), though it’s tougher as most of them are not crypto-native.”
The Reddit team was also an early adopter of Non-Fungible Tokens (NFTs). The platform was the first to enable integration of profile pictures with NFTs, which created tremendous excitement. It also partnered with Polygon to provide free NFT avatars to more than 3 million users.