SushiSwap is a Decentralized Exchange (DEX) that allows you to lock your SUSHI tokens into the network to earn gradual rewards over time. This is also called staking in the cryptocurrency world and is one of the most well-known tools especially in the world of decentralized finance (DeFi). According to Sushiswap, 0.05% of the total swap fees are redistributed to users proportionally to the amount of SUSHI they have staked. Thus, staking in Sushiswap is even more beneficial. Unlike other currencies, when staking SUSHI, you receive xSUSHI for use on the platform, a cryptoasset parallel to SUSHI. In this way, xSUSHI will always be more valuable than SUSHI as it accumulates the value of the platform fees.

Going into more detail, when staking SUSHI, it automatically mines the USD equivalent in xSUSHI. This mined xSUSHI is given to the staker. What conclusion do we draw from this? Well, the amount of SUSHI USD wagered is equivalent to the amount of xSUSHI mined. Then, xSUSHI holders can convert their tokens back into SUSHI, which would result in a burn of their xSUSHI.

What are the benefits of xSUSHI? First of all, as we have said, the value of xSUSHI will always be higher than SUSHI as it depends on the platform's commissions, in turn, xSUSHI grants voting rights and increases rewards over time. When you unload your funds, you will get back your original amount of SUSHI plus the extra amount you have earned in rewards, minus fees.

Now, we will evaluate the total supply of xSUSHI over the past 3 months. To do that, we will compute the current xSUSHI minted and the current xSUSHI burnt in order to get the total circulating supply. We will do that over time for the past 90 days. The chart below shows the different metrics over time. In the left y axis are represented both, the cumulative xSUSHI minted and cumulative xSUSHI burnt, and in the right y axis the xSUSHI supply all over time.

As a results, we can see how the mint and burn curves seems to be parallels and have similar trends. However, we can see that in sometimes one of them are smoother than the other and it marks the difference. We can see how the total minting goes from 1.20B to 1.24B of xSUSHI and the total burning line goes from 1.15B to 1.18B of xSUSHI. Finally, regarding total supply, we can see different trends. During November the total circulating supply dump from 62M to 50M of total xSUSHI, but from December 3rd, the total circulating started to jump to almost 59M at January 9th. From that, it seems to be stable at 58M approximatelly.

Now, we will gonna compare the xSUSHI circulating supply with SUSHI circulating supply over the last 90 days. To do that, we will plot the daily circulating supply of both, xSUSHI and SUSHI. Then, we will investigate about some relationshipp between both terms.

Showing the first chart, we can see the dynamics of both circulating supplies. In this case, the circualting supply of SUSHI tends to go up or stay stable at some points. Comparing both lines, we can see how while xSUSHI circulating supply remains constant during first period of time, the total SUSHI circulating supply went up. As well, during November, the SUSHI supply continued going up while xSUSHI circulating supply started to dump. However, during December, the xSUSHI circulating supply went up while SUSHI circulating supply remained constant. Finally, during last two weeks, the circulating supply of SUSHI went up again and xSUSHI circulating seems to have been stable. Finally, the last chart shows a comparison between both circulating supplies. However, there is any significant correlation between them.

This results seems to make sense because of when users mint xSUSHI, they are burning SUSHI at the same time, while when they swap xSUSHI for SUSHI, they are buning xSUSHI. Then, the circulating supplies may be affected by this factors.