TLDR: Sushi’s expansion and growth have been non stop - it’s time to give Sushi additional resources and autonomy to continue and better define its mandate and governance during a time when it needs it the most. Frog Nation proposes Daniele Sesta to become a part of the Sushi project through a new service collective with defined mandates to bring additional direction to the project and to help continue what Sushi has been doing, which is be THE decentralized DEX. A new service collective with its own discretionary abilities will exist to serve the DAO. Consider this a DAO to DAO proposal.
The path to this collaboration is straightforward:
create a service collective with Frog Nation
define discretionary powers of such a service collective
better define the parameters of governance, potentially activating onsen, miso, bentobox, etc.
Product Fleet: Sushi, started off as a UniV2 fork. What Chefnomi did was create a DEX that was truly user/LP owned. Since then many projects to extend the ecosystem have emerged:
Kashi Lending & Leverage
Sushiswap is the DEX that is on the most chains to date - coming in at 25 networks, of which 15 are active. It has also received ecosystem funds from various chains to deepen TVL. In the end this was of course Sushi’s path, Sushi is the DEX for everyone, so naturally it should be on all chains wherever possible. The development team has been extremely fast with executing and Sushi is definitively the reason why Multichain is currently being talked about so much.
According to Defilama the TVL is as follows:
This is an impressive list of chains and the TVL had neared $10b at one point. However, Sushi should begin to focus more on volume. A few of these chains do not add significantly to total volume and should be reevaluated. Sushi should become and is able to become the standard DEX on all chains. People like comfort, if they use Sushi on one chain they will feel more comfortable using it on another chain, rather than learning the UX of a new DEX. We are interested in proposing new go-to-market strategies for these chains as well as additional marketing as well.
Kashi Lending & Bentobox:
Kashi is a strong, if not the best, lending engine. By innovating the concept of risk isolation - Kashi goes down a layer further on lending primitives. While there have been no attempts to expand aggressive adoption, Abracadabra has shown that tech works and is fantastic. Bentobox and Kashi will need to go through periods of stronger promotion and adoption - there are no technical hurdles, only ones related to growth.
Miso is likely the most successful product Sushi has, and the only profitable one at that. It has seen raises from extremely interesting projects like YGG, and has managed to help BitDao raise a ton of funds. Projects like it, some issues have existed via frontrunning and such, but overall Miso has been a success. We see it as a key cornerstone of bringing liquidity and volume to Sushi and will continue existing efforts to further decentralize this platform.
Shoyu is an interesting attempt towards a decentralized Opensea, but currently does not fit the bill in terms of decentralization or a full feature set that can compete with Opensea. This has been a product the community was excited about. However the product is too immature and there has been recent controversy surrounding it we would not like to enter or extend. We advise to refocus efforts on the AMM and set up a new team to maintain Shoyu for the time being.
We don’t need to go into the history of Sushi, but through the fork and the creation of the token, a vibrant community and an incredible project was created. Sushi created the xSushi model. Giving parts of the trading fees to stakers. A model, which in the end was the reason why people got excited about Sushi. We need to extend efforts on tokenomics and dex efficiency to remain competitive.
Sushi contributors have seen a lot of changes over a short period of time. At the same time though some members have stayed persistent. Overall the technical talent is strong, the architecture of Sushi remains strong. Communications, marketing, community management are likely not the strongest as made apparent from the recent saga. A new focused collective will retain the mandate to evaluate compensation on a case by case basis.
Proposal of Change
In order to give long-time contributors a mandate and autonomy to make Sushi the best decentralized dex - we propose that Frog Nation retain and grant a lead over a new service team to extend its vision.
Why does this make sense?
Frog Nation preaches the same idea that Sushi did in the early beginnings. It’s about everyone, not about individuals. Together we are strong.
Just like Sushi, Frog Nation preaches the Multichain thesis. We don’t care about chain maximalism, all we care about is that we provide our services where they are needed.
Similar to Sushi, the Frog Nation is about shipping products quickly, as Sushi has done.
What needs to happen in the eyes of the Frog Nation?
First and foremost, Frog Nation establishes a mandate for a new service collective for Sushi and becomes a part of a combined ecosystem of Abracadabra, Popsicle Finance, and Wonderland. In the interim, this service collective retains the right to restructure Sushi and define specifically the parameters for governance at an elevated tempo. During this interim period Sushi and the new service collective will take part with Daniele Sesta and team, as well as share from know-how, and resources that these 3 projects have. Sushi will always stay as its own project, that fights towards its initial idea of becoming THE DEX for everyone.
Initial Changes to the Project:
- Full focus on DEX
- Change of Tokenomics
- Change in parts of Team
- Deprecating Legal Entity
Full Focus on DEX
Too many moving parts have distracted Sushi, and through this also been a toll on Sushi in its finest form. Granting a mandate to drive the focus will be key for this new service collective. This includes consolidation of various existing products and redirection of resources of certain products during this interim period.
One thing matters to become the best DEX that exists. That one thing is giving the best price to a trader.
Due to this Trident remains a critical part of the infrastructure- users get the best price and choice for every asset on any chain.
Change of Tokenomics / Governance
This collective aims to propose and consider with the mandate granted by governance, the following potential extensions:
- mechanism to enable Sushi holders to vote onto Onsen, but with subsequent rewards automated through analytics
- continuing the work to decentralize Miso through governance
- extending governance to bentobox and various strategies
- further mechanism to handle and distribute grants
Proposal to deprecate xSushi needs to be deprecated in the short term. Right now the emissions to xSushi holders are not helping the project. The only thing helping the project are the LPers and the people using Sushi. Due to this xSUSHI should be deprecated for now. It can always be re-implemented once the DEX shows that it is the most powerful dex.
Furthermore the questions raised above should be answered, and the tokenomics should be adjusted. The Curve model shows that it works and helps the project.
Change in parts of the Team
We propose in this new service collective the following initial positions, if these persons wish to accept: Omakase as Head of Operations, Matthew as the VP of Engineering, and Daniele Sesta as the Visionary/Strategist. Existing Frog Nation community will help with getting the project moving in terms of technical sprints, communication and marketing.
The service collective retains its own discretionary abilities and will propose the parameters for impact driven governance surrounding onsen, miso, bentobox, and other products to put sushi votes to work.
The overall grand vision
This proposal is bold, just as DeFi is bold. The move to align Sushi and Frog Nation would be a massive win.The synergies between the Frog Nation projects and Sushi are incredibly complementary. Sushi needs to get back to where it started. Which was being the DEX for everyone, the one that people choose to use. With Popsicle Finance being a liquidity manager, with Abracadabra offering the MIM stablecoin, lending and leverage, and with Wonderland striving to be the biggest DAO that exists. Sushi can gain the mandate it needs to thrive and become the biggest DEX on all chains.
Together we can move DeFi in the right direction where Sushi builds an accessible decentralized exchange, used on all chains by everyone.
Thank you for everyone’s time and consideration. We are open to answer any and all questions. This is not a step to act on quickly, we will need discussions, discord and twitter spaces calls in order for everything and everyone to move forward.
We hope you support Sushi. Long live Sushi.