Before we begin, a little History

A brief History of decentralised liquidity providing protocols

Uniswap:

Uniswap introduced the decentralized liquidity providing protocol, which operates using the liquidity pools model. A liquidity provider provides or increases the liquidity of a pool. Liquidity pools consist of pairs of tokens, the liquidity provider provides equal amounts of both tokens on the creation of liquidity pools. Future liquidity providers do the same. The constant market maker algorithm makes sure that the product of the pair of tokens in the liquidity pool remains constant. Uniswap uses this algorithm on its liquidity pools.

The most popular base ERC20 tokens include DAI, USDC, WETH, and USDT. The ratio of tokens present in the liquidity pools dictates the price of tokens.

SushiSwap:

SushiSwap project, a forked version of Uniswap, attempted to build on this.

SushiSwap gained an advantage over Uniswap by introducing protocol tokens, SUSHI.

Uniswap provides Liquidity providers 0.30% of the fee as the reward. On the other hand, SushiSwap provides 0.25% of the fee as a reward and the remaining 0.05% converts into SUSHI tokens.

The more a liquidity provider provided liquidity, the more tokens they earned. This enabled the Liquidity providers to cast governance votes.

ShibaSwap:

Shibswap project, part of the Shiba Inu Ecosystem, attempts to build on top of SushiSwap and it's protocol token model rewards and provide the distinct advantage that it incentivises liquidity by introducing a multi-token reward system.

• It incentivises liquidity by using it's own protocol token called BONE

• It allows staking of Shiba Inu Ecosystem Tokens - SHIB and LEASH and incentives it with BONE, SHIB and LEASH token

• Introduces special pools in the farm which earn quadruple or triple and double token rewards

• Trading fees of trades involving 5 of the most popular base ERC20 tokens namely, ETH, WBTC, DAI, UST, and USDC (internally referred to as Top Coins) is payed out as rewards in the respective tokens.

Staking a.k.a BURY pool with Quadruple/Triple rewards

1. SHIB staking pool receives

   1. BONE

   2. ETH &

   3. SHIB

   4. RYOSHI

   rewards

Staking a.k.a BURY pool with Double rewards

1. LEASH staking pool receives

   1. BONE

   2. LEASH

Farm a.k.a DIG pool with Triple rewards

1. LEASH-ETH pool

   1. BONE

   2. WBTC

   3. USDT

2. BONE-ETH pool

   1. BONE

   2. DAI

   3. USDC

Farm a.k.a DIG pool with double rewards

1. xFund-ETH pool

   1. BONE

   2. xFund

2. F9-ETH pool

   1. BONE

   2. F9

3. ZIG-ETH pool

   1. BONE

   2. ZIG

Sourced from Case Study: Uniswap (UNI Tokens Distribution)