The Best Ways to Earn with SushiSwap’s Liquidity Mining Pools

In the decentralized finance (DeFi) ecosystem, liquidity mining has become one of the most popular ways to earn passive income by contributing to decentralized exchanges (DEXs) like SushiSwap. Through liquidity mining, users can earn rewards by supplying liquidity to the platform’s pools, which are then used to facilitate trading. SushiSwap stands out in the DeFi space because of its Automated Market Maker (AMM) model and its unique Incentive Programs such as Onsen, which offers liquidity providers (LPs) rewards in SUSHI tokens and other project tokens. Sushiswap

This article explores the best ways to earn with SushiSwap’s liquidity mining pools in 2025, including tips, strategies, and opportunities to maximize rewards while managing risks.

1. What is Liquidity Mining on SushiSwap?

Liquidity mining refers to the process of providing liquidity (usually in the form of two different tokens) to SushiSwap’s liquidity pools in exchange for rewards. These rewards generally come from transaction fees generated by the pool, plus SUSHI tokens (SushiSwap's native governance token) and sometimes other tokens via specific incentive programs like Onsen.

SushiSwap is built on the Automated Market Maker (AMM) model, meaning users trade directly against liquidity pools, not a centralized order book. Each time a trade occurs, a small fee is paid, and these fees are distributed to liquidity providers.

2. Choosing the Best Liquidity Mining Pools

Not all liquidity pools on SushiSwap are equal, and in 2025, some pools will offer better returns than others. To maximize your earnings, it’s essential to select pools that align with your risk tolerance and goals. Here’s how you can make the best choices:

A. High-Volume Pools

Higher-volume pools tend to generate more trading fees, which can lead to higher rewards for liquidity providers. Popular trading pairs like ETH/USDT, DAI/USDT, and ETH/DAI generally experience higher trading volumes and, thus, higher transaction fees.

• ETH/USDT: This pair typically sees a lot of trading action, and given the wide usage of Ethereum and Tether, it can often be a high-yield pool.

• ETH/DAI: Stablecoins like DAI paired with ETH also bring in significant volume as users look to trade between volatile assets and stablecoins.

Higher-volume pools are a great place to start for consistent, reliable rewards.

B. Volatile Token Pairs for Bigger Gains

While volatile token pairs (like SUSHI/ETH or SUSHI/USDT) may expose you to more impermanent loss, they tend to offer bigger rewards. In addition to transaction fees, pools with volatile assets are often included in Onsen rewards, offering bonus SUSHI tokens or other project tokens as an incentive for providing liquidity.

1. SUSHI/ETH: This is a great pair for those willing to take on a little more risk for higher rewards. The SUSHI token is integral to SushiSwap’s governance, and pools involving it often have significant liquidity mining incentives.

2. Other high-volatility pairs: Tokens like LINK, AAVE, or UNI paired with stablecoins or ETH also tend to have high returns because of the volatility-driven demand. However, be prepared to manage risk as the value of your assets can fluctuate considerably.

C. Stablecoin Pools for Lower Risk

If you want to minimize your exposure to price volatility while still earning rewards, stablecoin pools like USDC/USDT or DAI/USDC are an excellent choice. While the trading fees from these pools may not be as high as volatile pairs, you can expect more predictable returns and lower impermanent loss.

1. DAI/USDC: Providing liquidity in stablecoin pools allows you to earn transaction fees while keeping your exposure to impermanent loss at a minimum.

2. USDT/USDC: This is another highly stable pair that often generates decent fees without the risk of significant price swings. It’s ideal for those who want to reduce risk while still earning rewards.

D. Multi-Chain and Layer-2 Pools

One of SushiSwap’s biggest advantages is its multi-chain support. SushiSwap operates not only on Ethereum but also on Polygon, Avalanche, Fantom, Arbitrum, and more. These networks typically have lower gas fees and are increasingly popular for DeFi activities, which means liquidity mining rewards can be significantly higher.

1. Polygon Pools: With lower fees and growing activity, Polygon liquidity pools offer excellent opportunities to earn rewards without high transaction costs.

2. Arbitrum and Optimism: As Layer-2 solutions, these networks offer faster and cheaper transactions, which could significantly boost the profitability of your liquidity provision.

By providing liquidity on multiple networks, you can take advantage of different reward structures and potentially reduce your overall risk exposure.

3. Maximizing Rewards with SushiSwap’s Onsen Program

SushiSwap’s Onsen Program is a key feature that incentivizes liquidity provision by offering bonus SUSHI tokens to liquidity providers. These incentives can significantly increase your rewards compared to simply earning transaction fees alone.

A. Participate in Onsen’s Hot Pools

Onsen features hot pools, which are newly created or underrepresented liquidity pools that SushiSwap wants to incentivize. These pools typically offer higher reward rates to attract liquidity and balance the ecosystem.

• SUSHI Rewards: These hot pools offer additional SUSHI tokens on top of the regular transaction fees. For example, the SUSHI/ETH pool could offer more than just transaction fees; you may also receive bonus SUSHI rewards.

• New Project Tokens: SushiSwap sometimes offers additional rewards in the form of new tokens. These new tokens are often issued by projects looking to bootstrap liquidity and community involvement.

B. Yield Farming with SUSHI-Boosted Pools

SushiSwap has begun offering SUSHI-boosted yield farming options, where liquidity providers who stake their SUSHI tokens in certain pools can earn greater rewards. If you already hold SUSHI tokens, consider staking them to maximize your liquidity mining rewards.

1. Boosting Your Rewards: By staking your SUSHI tokens, you increase your allocation in liquidity pools that are eligible for extra rewards. This means that you’ll earn not just trading fees but also SUSHI token rewards and higher yield farming incentives.

4. Strategies for Managing Risk and Maximizing Rewards

While liquidity mining can be a lucrative way to earn, it’s not without risks. Here’s how to manage risk and optimize your earnings:

A. Mitigating Impermanent Loss

Impermanent loss occurs when the value of your assets in a liquidity pool diverges from what it would have been if held in your wallet. To mitigate impermanent loss, consider:

• Choose Stablecoin Pairs: As discussed earlier, pools like DAI/USDC have much lower risk of impermanent loss compared to more volatile pairs.

• Rebalance Liquidity: Keep track of market trends and rebalance your liquidity position accordingly. If a pair is particularly volatile, consider moving your funds to a lower-risk pool.

B. Diversify Across Pools

Diversification is a key strategy for reducing risk. Instead of providing liquidity to just one pool, spread your liquidity across multiple pools. This reduces exposure to any single asset’s price movement, as well as the risk of impermanent loss.

C. Use SushiSwap’s Multi-Chain Strategy

If you're providing liquidity on Ethereum but facing high gas fees, consider moving part of your liquidity to Polygon, Arbitrum, or Fantom, where gas fees are lower. This allows you to make smaller trades more efficiently and increase your overall rewards while reducing transaction costs.

D. Stay Updated on Onsen Rewards

Onsen rewards can change rapidly, with new pools being added and older ones being retired. Stay up-to-date on SushiSwap’s Onsen Dashboard to monitor which pools are receiving bonus rewards. By jumping on high-reward pools early, you can maximize your yield before the rewards decrease.

5. Tracking and Optimizing Your Yield Farming Strategy

To effectively manage your liquidity mining activities and ensure you're getting the best returns, consider using tools and strategies like:

• Yield Trackers: Use DeFi analytics platforms that track liquidity pool performance and help you monitor how much you’re earning in rewards. This can help you identify the best performing pools and make adjustments as needed.

• Reinvestment: Reinvest your earned rewards (like SUSHI) back into liquidity pools to compound your earnings. By compounding your rewards, you effectively increase your stake in the pool and maximize returns over time.

6. Conclusion

 

SushiSwap offers a wide variety of liquidity mining opportunities in 2025, with rewards that include transaction fees, SUSHI tokens, and bonuses from the Onsen program. To maximize your earnings, it’s important to choose the right pools, diversify across different networks and assets, and stay informed about changing incentive programs.