1. In large saucepan over medium-high heat, heat 3 T of oil. Add yellow onions and saute until translucent, about 7 minutes. Add garlic and pearl onions, then reduce heat to medium-low and cook until pearl onions are tender, about 10 minutes.
Add tomatoes, capers, olives, oregano, bay leaf, sugar, and thyme. Bring to a simmer, then reduce heat to low. Simmer for 45 minutes or until sauce begins to thicken. Remove from heat. Discard thyme stems. Stir in butter until completely melted. Season with salt and pepper and set aside.
2. During final 25 minutes of cooking time, preheat oven to 375. Season salmon with salt and pepper and put in foil packet. Bake 15-25 minutes, until flakes easily, depending on thickness and size. Serve with sauce.
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