Vampire Attack Begins, Chairman Takes Office! SBF Explains Migration Plan, Uniswap Hints at Launching V3.

After copying the Uniswap protocol and launching liquidity mining to start off, the controversial SushiSwap has faced disputes ranging from plagiarism, liquidity absorption, migration proposals, the anonymous founder's token dump, to now being led by FTX founder Sam Bankman-Fried (SBF). Currently, in addition to a new proposal to "reduce yield and increase lock-up period" ending on the evening of September 10, the liquidity migration was also completed at 22:10 on September 9.

SushiSwap Timeline of Events

The SushiSwap controversy includes the anonymous founder Chef Nomi selling off their Sushi tokens and transferring the protocol to SBF, which was unexpected. The liquidity migration also risks turning the trading depth that Uniswap had built up over time into a bubble. Currently, SushiSwap has introduced a decentralized exchange that is almost identical to Uniswap's interface, aiming to replace Uniswap's dominance. The key events are as follows:

• August 28: SushiSwap launched, with nearly $300 million locked in a single day
• September 1: Listed on major exchanges such as Binance, Huobi, OKEx, FTX
• September 3: Chef Nomi initiates liquidity migration proposal
• September 4: SBF proposes Solana chain version of SushiSwap
• September 5: Nomi emphasizes the necessity of migration and sells all Sushi tokens
• September 6: SBF pressures Nomi on Twitter to abandon private keys, successfully taking over
• September 6: SBF initiates Migration Plan 2.0 and multi-signature proposal
• September 7: Band protocol denies their CTO is Nomi
• September 8: Proposal to "reduce token issuance and increase lock-up period"
• September 9: Launch of decentralized token exchange
• September 9: Liquidity migration begins

Proposal to "Reduce Token Issuance and Increase Lock-up Period"

On September 9, SushiSwap had several developments, including the "Reduce Token Issuance and Increase Lock-up Period" proposal, along with various liquidity pools that are set to migrate. According to a proposal involving the new chef, SBF, founder of FTX, SUSHI will reduce its issuance and introduce a locking mechanism. Originally, 100 SUSHI tokens were issued per block, but this will change to:

• First and second year: 50 SUSHI per block
• Third and fourth year: 25 SUSHI per block
• Fifth year: 10 SUSHI per block

Additionally, two-thirds of the new SUSHI tokens generated will be locked up for a year. Locked SUSHI tokens can earn transaction fees but cannot be sold or used for voting. The proposal is set to conclude on the evening of September 10.

Liquidity Migration Completed: Uniswap Loses Nearly 70% of Liquidity

According to the SushiSwap official announcement, the migration contracts have been audited by smart contract auditing firms Quantstamp and Peckshield. Non-essential issues have also undergone migration testing on the Ropsten testnet. The first pool to migrate is CRV/ETH, and if all goes well, the process will move to the next stage.

SBF mentioned on Twitter that the BASED Money pool will not migrate as it does not support SushiSwap. The pool will no longer receive rewards after migration, and users continuing to participate in SUSHI liquidity mining will share an average of the $1 million SUSHI token reward provided by SBF. Another ongoing proposal will increase the migration incentive bonus to $2 million in SUSHI.

As of the morning of the 10th, following the successful transfer of user liquidity from Uniswap, SushiSwap's decentralized token exchange platform currently holds $1.27 billion in liquidity (source). Uniswap, on the other hand, has seen its liquidity drop from $1.6 billion to $518 million, reverting to its funding levels at the end of August. According to DeFi Pulse data, Uniswap has dropped to third place in locked assets (TVL) in the DEX category.

Intense Liquidity Battle Imminent

Prior to the official start of the migration project, the locked value of Uniswap had dropped from $1.2 billion to approximately $810 million at the time of writing.

The biggest loser in this event, Uniswap founder Hayden Adams, has not made many comments. However, just 10 minutes before the migration project began, he released a new version of the Uniswap logo on Twitter, widely interpreted by the community as a sign of the upcoming release of Version 3.