How to become a super crypto app? VC institution: SushiSwap frontend must be divided into professional version and simplified version.
In order for SushiSwap to become a super app, it must separate its frontend into a professional version and a retail version, similar to how Coinbase has Coinbase Pro.
Since its launch, SushiSwap has continuously expanded into various businesses, including:
- Liquidity mining project: Onsen
- Staking feature: Sushi Bar
- Token issuance platform: MISO
- Lending product: Kashi
- Token vault: BentoBox
Of course, this also includes the original core of SushiSwap, which is an AMM exchange platform. Despite the continuous introduction of new products, SushiSwap currently does not seem to have a flagship product, while Uniswap, which was originally its top competitor, still only offers AMM and dominates the field.
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Co-founder of Multicoin Capital, Kyle Samani, shared his thoughts on "What SushiSwap wants to be when it grows up," summarized as follows.
0/ Sushi and super apps. A 🧵
Sushi just turned 1. I think Sushi is little bit lost, and doesn’t know what it wants to be when it grows up
Multicoin owns some SUSHI
— Composability Kyle (@KyleSamani) August 25, 2021
Table of Contents
US Fintech Always Operates Independently
Kyle Samani uses WeChat as an example of a super app in the East, and points out that in comparison, the United States always operates independently in the fintech field, such as:
- Banking: JPMorgan Chase
- Stocks: Robinhood
- Credit cards: JPMorgan Chase
- Cryptocurrency: Coinbase
Examples like these show that as the market becomes saturated, almost all fintech unicorns are trying to offer other services like account opening, checks, stocks, options, cryptocurrencies, etc., which means: "They are all striving to become super apps."
Super Apps in the Crypto Space
Current super applications such as Coinbase, Binance, FTX, and other exchanges cover spot trading, futures, perpetual contracts, margin trading, lending, credit cards, and other services. However, logically providing all these products in one interface is quite challenging.
This is why Coinbase has Coinbase Pro; Binance can switch between professional and Lite modes; FTX acquired Blockfolio and developed a simplified version of the app.
What does this mean for SushiSwap?
SushiSwap's Products are Too Decentralized
Sushi offers products like Onsen, Sushi Bar, MISO, Kashi, BentoBox, etc., striving to become a super app. However, having overly decentralized products can lead to a cluttered user experience and regulatory issues. For example, when users visit sushi.com, they can see a bunch of functional tabs in the top left corner.
Kyle Samani admits he is not a Sushi expert, but he feels that while there is some integration between these products, they seem more like independent protocols/products. The advantage is that Sushi's product development is decentralized and driven mostly by the community:
Sometimes the community says, "Can you add X feature?" and in most cases, the team will fulfill the community's wishes. Currently, Sushi tends to focus on products centered around retail investors and the community.
Samani believes this is not a bad thing, but the Sushi community has not seriously discussed the future changes in the world and Sushi's positioning in the future.
So, what should be done?
Major Frontend Revamp
To become a super app, Samani points out that Sushi needs to divide its frontend into a professional version and a simplified version. FTX is also moving in this direction, although it is currently a bit chaotic. He stated:
I think Sushi is the largest, most interesting decentralized autonomous organization to date, driven deeply by the community, and almost impossible to replicate. Sushi should continue to clarify its future direction through the power of the community. Sushi has proven it can integrate different protocols on a large scale and has real value, which is remarkable. I hope the future product iterations will be clearer and more focused.
SushiSwap Asia Head Responds: Misunderstanding of the Super App Concept
Interview with SushiSwap on their views regarding this commentary.
SushiSwap's Asia Head AG responds, "I don't quite agree with his understanding of super apps; FTX, Coinbase are currently far from the concept of super apps."
AG states that in Samani's "US fintech always operates independently" example, regulation is the main factor. For example, the 1993 Bank Act stipulates that investment banks and commercial banks' businesses should be separate; in terms of internet companies, U.S. antitrust regulations and laws are more perfect and clear than in China.
She believes that a super app should not only have its own numerous applications but also provide a platform where almost infinite types of applications can be built on it. Super apps are also a common phenomenon in the Chinese internet world, with a borderless approach. For example, you can satisfy basic needs like clothing, food, shelter, and transportation on WeChat. Most internet applications in China are super apps, such as WeChat, Taobao, Meituan, etc.
SushiSwap Asia Head: User Time is the Most Valuable Element
AG states that in the Chinese internet community, they believe user time is the most valuable element in the age of traffic, so all applications are competitors from this perspective, all vying for user time.
She believes that from this perspective, applications must do one thing: find ways to occupy users' time through various means, keeping traffic and users within their application. This also explains why most Chinese applications are super apps.
She further explains that WeChat is a super app not because it offers features like voice messages and video chats in addition to text chatting, but because Mini Programs directly enable the use of thousands of mini-programs within WeChat, consolidating all traffic entry points within WeChat.
Similarly, an exchange becoming a super app is not because it offers spot trading, futures, options, and NFT exchanges, but because it provides a platform that can be infinitely expanded.
AG concludes that Sushi has the potential to become a super app, not because it combines AMM, lending Kashi, IDO platform MISO, NFT trading platform Shoyu; but because it offers an open platform without admission requirements, where any development team can develop their products, enjoy the benefits of the Sushi ecosystem, such as DEX liquidity, and the efficiency of leverage lending Kashi. Such a platform can create an infinite positive cycle for Sushi, with the ecosystem growing stronger, attracting more developers and projects to develop on BentoBox, continuously expanding the ecosystem, and attracting new users.