With this integration of Smart Pools, users can now earn higher yields without the hassle of manually rebalancing their liquidity.
Decentralized finance (DeFi) network Steer Protocol has teamed up with Sushi to integrate its innovative Smart Pools into the ecosystem.
According to the announcement, the collaboration aims to revolutionize liquidity management and provide a seamless experience for Liquidity Providers (LPs) within Sushi’s Concentrated Liquidity Pools.
Smart Pools Now Fully Integrated into Sushi
The DeFi ecosystem heavily relies on LPs, yet the challenges they face in generating yield are undeniable. However, Steer Protocol has introduced its Smart Pools, an Automated Liquidity Management (ALM) solution to address these challenges.
Sushi announced on November 9 that it has successfully added the Smart Pools directly into its user interface (UI) to offer LP providers the opportunity to enhance their capital efficiency with v3 Concentrated Liquidity pools without the need for active liquidity management.
With this integration, users can now earn higher yields without the hassle of manually rebalancing their liquidity.
Both Steer Protocol and Sushi initiated the partnership earlier this year in June. The alliance will benefit Sushi users in many ways, including auto-compounding fees combined with amplified rewards, elevating profits, and minimizing risks for LPs, with up to 8.5x efficiency compared to v2 superior fees compared to other ALMs.
Additionally, the Steer Protocol will offer reduced slippage and impermanent loss for traders on Sushi.
“From the arbitrage perspective, we can place liquidity, which looks like books that are on a centralized exchange, allowing us to capture that price movement before it actually might happen on-chain,” said Derek Barrera, founder of Steer.
Steer Protocol said it currently supports Sushi on Polygon, Arbitrum, Optimism, and BNB Chain.
Sushi Moves to Enhance Its Tokenomics
As an ALM platform focused on concentrated liquidity, Steer Protocol has quickly climbed the ranks of the top 10 liquidity management protocols.
Currently, the protocol holds the ninth position in total value lock (TVL), as reported by DeFillama. Meanwhile, the integration with Sushi comes as the DeFi protocol contemplates changes to its tokenomics. Jared Grey, Sushi’s “Head Chef,” has proposed adjustments to incentivize LPs to lock in their liquidity for longer durations. According to him, the current tokenomics pays out over $100 million in emissions to LPs for every $300 million in TVL created.
Over the past weeks, Sushi’s native token SUSHI experienced a notable price surge from $0.55 in mid-October to $1.26 in early November, showcasing the positive market sentiment surrounding these developments.
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