I’m writing the following lines to clarify what is happening with the trading on SushiSwap for WFTM/LCD pair specifically referring to the frequent sells coming from the address ending with “…7506”.
First of all I invite you to look carefully at the block explorer. Here you’ll immediately notice that “…7506” address refers to SushiSwap: V2 Router smart contract.
But why is this address full of selling orders and no buys? Are these the initial contributors/team members selling their tokens?
Of course not!
When we first added liquidity on SushiSwap this was made by providing the pool with WFTM/LCD LP (Liquidity Provider) tokens. This was done in order to give the community the chance to trade LCD in the free market.
After the creation of liquidity the LP tokens where sent directly to Lucidao vaults. As a consequence no one from the team can remove or transfer this liquidity without a Proposal and Voting from the community.
But why is this important?
Let’s say I hold 2K LCD tokens in my wallet and I want to sell them for 80.89 FTM for a price of $0,084. Once I operate the swap from SushiSwap DEX this is what is going to happen:
- My 2K LCD will be directly sent to the WFTM/LCD Pool;
- WFTM/LCD Pool will automatically send 80.89 WFTM to SushiSwap V2 Router;
- SushiSwap V2 Router will burn 80.89 WFTM (by sending them to self destruct address 0x00…)
- SushiSwap V2 Router will send me 80.89 FTM.
In simple terms if I’m selling my LCD for FTM the trade history on dextools.io won’t show my transaction but SushiSwap V2 Router’s one (the famous …7506 address) that is operating the WFTM unwrap in order to give me FTM.
So YES! This is people selling on the market but who are we to control their tokens?
One thing is sure. No one from the team is or will be dumping their tokens.
We are here for the long term and to make an impact in the defi and crypto space… not to fill some bags with a couple of thousand!