One of the biggest reasons people are deciding against providing liquidity on Sushiswap or AMMs, in general, is the opportunity cost of not being able to farm other protocols.
Sushiswap should lead the development and innovation of AMMs and design new smart contracts that allow unused liquidity to be deployed in other audited high-level yield farming protocols with low risk profile.
But what about the liquidity?
A certain threshold has to be kept inside the smart contract while the slippage will be based on the whole collateral also deployed into the yield farms.
Important hereby is that if the actual liquidity in the smart contracts falls too much that we can automatically redeploy the capital from the yield farms into the swap contract.
Of course this would only work for the biggest pairs with the lowest volatility but could be expanded on.
Key benefit would be the extra income generated for LPs, token holders etc.