Chapter 5 Memes of the WeekChapter 1 Our View | Will SushiSwap Fall or Reborn on Another Chain?Warning Bells of Liquidity Mining
Many industry experts have long anticipated that this year's liquidity mining craze could bring about a storm similar to the ICO bubble burst in 2017. The recent YAM incident highlighted the importance of contract security, while SushiSwap's Sushi, created by an anonymous team, showed how much damage such a team could cause to a project. SushiSwap cleverly capitalized on community resentment towards VCs, Yearn's success, and the lack of a strong competitor to Uniswap in the market, leading everyone to be optimistic about SushiSwap and invest a large amount of money to earn governance tokens SUSHI. However, the actions of its founder - the anonymous Chef Nomi, who sold a large amount of tokens, quickly alerted everyone that this might be a carefully planned Exit Scam.
Sam Bankman-Fried SBF's Proposal
After Chef Nomi's exit, Serum founder SBF actively proposed to the community to transfer Sushi to Solana, a chain he is actively promoting. For the Sushi community and the affected cryptocurrency community, this seems to be a good thing: after all, SBF is the CEO of the well-known exchange FTX and has a considerable reputation within the community, making him a reliable manager. The proposal received support from 84.91% of the voters.
Transfer of SushiSwap
This may be divided into several stages:
Transfer ownership to a multi-signature wallet managed by multiple people
Transfer of SushiSwap contract
Transfer of SUSHI tokens
Currently in the first stage, where nominees are being voted to manage the multi-signature wallet. According to the SBF proposal, rather than transferring SushiSwap, it is more like copying this AMM to Solana, creating an independent TVL. FTX is expected to release a bridge sollet.io next week for SUSHI tokens to be interoperable between ERC20 and SPL Solana tokens.
Rebirth of SushiSwap
According to the proposal, the transfer of SushiSwap will be partially released within a month and completed by the end of 2020. If successful, Sushi will benefit from Solana's performance, becoming an AMM faster and cheaper than Uniswap. According to the proposal, Sushi may also share liquidity with Serum's order book on the decentralized exchange and have lending functions. In conclusion, we believe it is worth looking forward to and paying attention to. This will significantly strengthen the DeFi ecosystem on Solana, posing a stronger challenge to Ethereum.
References
Chapter 2 Highlights of the Week
✨ Headlines of the Week
"I care about migration, not the coin price!" Sushi founder sells a lot, Michelin one-star becomes a hot topic
The once hottest SushiSwap (SUSHI) recently not only plummeted by 53%, but it was likely due to the anonymous founder Chef Nomi's massive sell-off, although he insisted it was to keep the project going. On the other hand, Serum founder SBF stated that Chef Nomi was terrible: "Anonymous teams are really scary. Anonymous teams with power are even scarier." Under SBF's pressure, Chef Nomi eventually gave in and handed over control of Shshi to SBF. In other words, the migration of Uniswap liquidity will be completed under SBF's leadership. And the Solana/Serum version of SushiSwap that SBF hopes for may also happen with the community's consent.
Blockchain security company Quantstamp released a security report on SushiSwap, pointing out 10 major risks on the platform. These include "inability to prevent users from providing the same liquidity repeatedly" and "loss of manager's private key resulting in user funds being stolen," among others. Fortunately, it only includes two moderate risks, three low risks, and five code messaging issues, "not as fatal a crisis as YAM."
The Curve fork project Swerve announced its official launch, allowing users to provide stablecoins DAI, USDC, USDT, and TUSD to obtain liquidity tokens swUSD, and then earn platform governance tokens SWRV by pledging swUSD. Swerve adopts fair token distribution without pre-mining and private placement, fully owned by the community.
Decentralized lending protocol Aave announced its proposal to support the addition of RealT tokenized assets to its protocol. RealT tokenized assets can be used as collateral for borrowing stablecoins in the "Aave RealT" market. Aave sees RealT assets as a better diversification tool due to the low correlation between real estate and crypto assets.
Taiwanese DeFi project Hakka Finance launched liquidity mining on September 3, opening two reward pools: Black Hole Swap pool distributing 1 million HAKKA weekly, and Balancer pool distributing 6 million HAKKA weekly.
🚀 DeFi Protocols
🏛 Stablecoins
🛠 Liquidity Mining
⚠️ Security Incidents
💰 Financing
Chapter 3 Data Indicators
The data for this week is from 2020/9/1 to 9/7. TVL (Total Value Locked) indicates how much value is stored on the platform; IPY (Interest Per Year) is the current borrowed funds * annual interest rate, i.e., the platform's annual interest income. Data source: DeFi Pulse, CoinGecko. (Unit: million USD)
Total DeFi Metrics
Lending Platform Scale
DEX Scale
DeFi Coin Prices (Farmer's Zone)
Chapter 4 Insights from the Big Players
Compound founder Robert Leshner shared his views on APY on Twitter. He pointed out that APY calculates the interest earned at the current rate "if it could sustain for a year," but how many platforms only sustain for a few days? We should calculate based on days, hours, or even blocks for increased accuracy.
Yearn founder AC recently shared his thoughts on open finance on Twitter. He mentioned that since yinsure.finance launched, not only @gabusch and @rariblecom, but also @insider0x have joined in collaborative creation, and without even needing a meeting between the three parties.
In response to discussions online about SushiSwap being the community's power against VC investors, Uniswap founder Hayden Adams recently shared his opinion on Twitter. Hayden pointed out that SushiSwap is at most a product that a competent engineer can create in a day, and its significance is just a big whale playing with the market. "Anyway, enjoy your fugu sushi, I'm going back to build v3."
