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"Sushi rebounds with a 100% surge in seven days! FTX CEO: Poor performance in the third quarter, protocol development continues uninterrupted."

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"Sushi rebounds with a 100% surge in seven days! FTX CEO: Poor performance in the third quarter, protocol development continues uninterrupted."

Among the top 100 cryptocurrencies by market capitalization, the decentralized exchange platform SushiSwap (SUSHI) has shown remarkable performance in the past week. Despite a steep price decline of over two months, Sushi has doubled in value with a 114% increase in the past seven days and even approached 150% in the last 15 days. The project's lead developer, Sam Bankman-Fried (SBF), has emphasized that SushiSwap is continuously being developed. This article also summarizes the latest updates on SushiSwap.

DeFi Showing Signs of Recovery

Over the past week, DeFi tokens have shown impressive performance. Yearn.finance (YFI) has rebounded from a low of $7,500 on November 5 to $18,000 (140% increase), while Sushi has risen from $0.5 to $1.25 before the deadline, making it the best-performing project among the top 100 market caps last week.

(Source: coinmarketcap)

Sushibar v2 Improvement Proposal

SushiSwap released an improvement proposal on the 13th, summarized as follows:

Fixing the Sushibar Vulnerability

Developers discovered that a hacker with the account name jokap.eth made over 10 ETH in profit within 12 minutes through a Sushibar vulnerability, following these steps:

  • Borrow SUSHI from Cream
  • Stake Sushi to get xSushi
  • 12 minutes later, swap xSushi back to SUSHI
  • Return the borrowed SUSHI
  • Profitable SUSHI exchanged for WETH

SushiSwap co-founder 0xMaki stated that there should be a stronger symbiotic relationship between SUSHI holders and the protocol, extending token lock-in periods to intervals of more than 7 days, such as three months, six months, one year, two years, etc., and providing higher rewards based on the lock-in period.

Increasing Sushibar Yield

The average daily yield of Sushibar is currently $15,000, with an annual return rate ranging from 15% to 75% (16.6% before the deadline). 0xMaki pointed out that adopting curve.fi's strategy to add token lock-in periods for SUSHI and increasing rewards based on different lock-in periods will be crucial.

(Source: sushi.zippo)

Reward Distribution Shifted from SUSHI to DAI

0xMaki emphasized the necessity of this move. Although it may weaken the buying pressure on SUSHI tokens, the shift to more participants and locking liquidity rewards can mitigate this issue. Furthermore, by using DAI as a reward, any token of interest in the community can follow YFI's strategy to create a matching liquidity pool.

Strong Performance Draws Attention

Sushi's strong performance has attracted attention not only from investors and the community but also from DeFi investment institutions like Future Fund and research institutions like Nansen, which have released the latest updates on SushiSwap. The project lead and FTX Exchange founder Sam also emphasized on Twitter that SushiSwap will continue to develop:

With the fading aura of DeFi and the memory of NomiGate still fresh, SushiSwap's performance in the third quarter was really bad, but it is still in development during this period. I have not actually participated in the development of SushiSwap, but I am glad to see it driving the industry forward.

Interestingly, although Sam emphasized no intervention in the development work, a Nansen research report found that Sam's quantitative team Alameda is the second-largest liquidity provider on SushiSwap (17 liquidity pools), with a combined investment of over $35 million with Three Arrows Capital.