Understanding The Protocol
To understand the protocol we need to answer following questions about the protocol:
Sushi MasterChef is farming protocol - it lets user deposit his or her Sushi LP tokens into a farm. Immediately user's investment begins to accrue rewards in terms of newly minted Sushi tokens and potentially another token rewards. In this way users are incentivized to provide liquidity to SushiSwap pools and to stake received SLP tokens.
A user can do following interactions with MasterChef:
- Deposit SLP tokens to MasterChef farm
- Withdraw SLP tokens from MasterChef farm
Above actions can be mapped to finance terms as shown below:
- Deposit SLP tokens in a farm -> Make investment in a market
- Withdraw SLP tokens from a farm -> Reedem investment from a market
In the next chapter let's dive into the smart contract implementation!