in this article it explains how does this relate to the total supply of Sushi over the past 3 months? Explain the mechanism behind Xsushi and show you the total supply of xSushi over the past 3 months.

About xSUSHI

By providing liquidity to SushiSwap pools, you receive SLP Tokens and earn trading fees, as well as SUSHI tokens when you stake your SLP tokens. Staking your SUSHI tokens for xSUSHI offers you a chance to earn a portion of trading fees when you remove your liquidity from SushiSwap pools. 

The protocol can be used by anyone regardless of whether they are a liquidity provider. By buying SUSHI tokens and staking them on the platform, anyone is able to earn trading fees. SushiSwap charges a 0.3% fee for all trading pairs, with liquidity providers receiving 0.25% and SUSHI token holders receiving the remaining 0.05%.SUSHI is better for token holders, whereas liquidity providers are better off with a Uniswap pool making the full 0.3%.

To earn swap fees from SushiSwap, staking SUSHI tokens on the platform will yield xSUSHI tokens. So finally we can do a variety of things on SushiSwap: trading tokens, adding liquidity to pools, staking your SLP tokens for SUSHI and staking xSUSHI tokens for fees.

So to get a xSUSHI we need to follow the below mechanism ,

• You receive xSUSHI as a token of voting rights and a token that can be used with other protocols if your SUSHI is staked into the SushiBar.
• Users who make trades on SushiSwap Exchange will be charged a 0.3% fee. As part of this fee, 0.05% of the fee goes into the SushiBar pool as LP tokens.
• In the rewards contract, each LP token is exchanged for Sushi (on the SushiSwap Exchange) at least once every day, and the new Sushi is divided up proportionally among the respective xSushi holders, meaning that their xSushi is now worth more Sushi than when it was originally purchased.
• Until you withdraw you won’t be able to see how much you’ve gained. Originally, 1 Sushi was equivalent to 1 xSushi, but like LP tokens, the price of xSushi changes over time depending on how many Sushi rewards are present.
• Upon unstaking, you will get back all the xSUSHI and any fees you incurred.

Below is a graph showing the daily supply of xSUSHI over the past 3 months. From October 2021 onwards, xSUSHI’s supply is in increasing trend. It then shifts to dropping trend during November 2021 onwards. From December 15, 2021, xSUSHI’s supply is in rising trend again. In the past three months, xSUSHI has decreased by more than 10%.

In the below graph, we can see that SUSHI daily supply has been increasing steadily over the past 3 months. Over the past 3 months, total SUSHI has increased nearly by 2%.

In a comparison of both SUSHI and xSUSHI on a month-to-month basis, SUSHI’s supply is continuously growing, but the supply of xSUSHI has declined from November to December. xSUSHI supply commenced increasing from Dec onwards and is now showing signs of increasing.

xSUSHI’s supply has come down in certain areas and is now gaining in the total supply, according to the above data. Staking SUSHI tokens in the Sushibar allows you to acquire xSUSHI tokens. In order to obtain xSUSHI tokens, one must first stake SUSHI tokens. Everyone should know xSUSHI tokens have greater value than regular SUSHI tokens.

xSUSHI’s mechanism of earning a portion of trading fees when you remove your liquidity from SushiSwap pools should be more visible to everyone. For example, Everyone should know if you stake your SUSHI tokens, you would acquire a chance to earn a share of trading fees when you remove your liquidity from SushiSwap pools.  And also Keeping xSUSHI will give more profit than keeping SUSHI.

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