However, he said that Miso merely suffered from a “lack of resources.”
Long term, Lilley said that SushiSwap has plans to launch new staking and launchpad products to replace the soon-to-be-defunct services, once it has the necessary resources available.
Lilley said he believes that this goal requires focusing on the exchange element of the business, which he described as being “inarguably” the “breadwinner’ of the company.
SushiSwap’s financial struggles
The decision comes as the platform has faced significant financial uncertainty in recent months. In a December update the firm announced that it only had 1.5 years of operating costs, saying that the “situation requires immediate action to ensure sufficient resources for uninterrupted operation”.
SushiSwap CEO Jared Grey said that the company has been pursuing a strategy that includes renegotiating infrastructure contracts as well as cutting back on “underperforming or superfluous dependencies” and enforcing a budget freeze on expenses such as “non-critical personnel and infrastructure” as part of efforts to cut back yearly expenditure to $5 million.
In the past 12 months, Sushi has experienced a 30M USD loss in its emissions-based reward strategy to bootstrap liquidity & incentivize LPing; Sushi spends more on emissions than swap volume generated. 3/