Launch & operation of fSUSHI

Proposals
1

Summary

fsushi
fsushi1024×1024 27.4 KB

fSUSHI is a protocol built on top of SushiSwap and Flashstake that enables stakers to earn instant upfront yield without waiting for it to accrue. I propose the launch & operation of fSUSHI by me and OhGeez DAO backed by SushiSwap protocol.

Abstract

fSUSHI was built for benefiting SushiSwap protocol and bringing back users who thought SushiSwap was not innovative and left the ecosystem:

  1. Users now can earn upfront yield instead of waiting and it’s a huge advantage over competitors
  2. LPs can earn not only SUSHI but fSUSHI as well on top of it while staking
  3. After depositing LP tokens they receive fToken(ERC-20), a receipt token, to represent their position (MasterChef doesn’t have this feature) so they can sell & buy their yield-bearning positions easily
  4. Yield position automatically compounds & reinvests SUSHI rewards without loss(like lending in AAVE or xSUSHI) to give stakers higher yield
  5. When Trident pools become dominant, users can migrate their liquidity to the new pool with 1-click and they still receive SUSHI + fSUSHI

Motivation

SushiSwap lacked innovation for a while and it was losing its competitiveness. Now it’s a time to show DeFi ecosystem that SushiSwap is still alive with this innovative features.

Specification

How it works

                                                                         ┌───────────────────┐
                                                                         │                   │
                                                                         │      SousChef     │
                                                                         │                   │
                                                                         └───────────────┬───┘
                                                                                ▲        │
                                                                         fToken │        │ fSUSHI
                                                                                │        ▼
                                                                         ╔══════╧════════════╗ aLP Token   ┌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌┐             ┌───────────────────┐
                                                                         ║                   ╟────────────►┤                   │ aLP Token   │                   │
                                                                         ║       User        ║             │   FlashProtocol   ├────────────►│   FlashStrategy   │
                                                                         ║                   ║◄────────────┤                   │             │     SushiSwap     │
                                                                         ╚══════════════╤════╝   fToken    └╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌┘             └───────────────────┘
                                                                               ▲        │
                                                                      aLP Token│        │ SLP Token
                                                                               │        ▼
 ┌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌┐ invest SUSHI  ┌───────────────────┐  SUSHI yield  ┌─────┴─────────────┐
 │  AAVE SUSHI pool  │◄──────────────┤                   │◄──────────────┤                   │
 │        or         │               │   SushiBarVault   │               │  AccruedLPToken   │
 │    xSUSHI etc.    ├──────────────►│                   ├──────────────►│                   │
 └╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌┘ accrued SUSHI └───────────────────┘ accrued SUSHI └──────────────┬────┘
                                                                               ▲        │
                                                                   SUSHI yield │        │ SLP Token
                                                                               │        ▼
                                                                         ┌╌╌╌╌╌┴╌╌╌╌╌╌╌╌╌╌╌╌╌┐
                                                                         │                   │
                                                                         │    MasterChef     │
                                                                         │                   │
                                                                         └╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌╌┘

Scenario 1: Staking

  1. 0xMaki wants passive but higher yield than MasterChef.
  2. He stakes his SLP tokens into AccruedLPToken to get aLP tokens.
  3. He stakes his aLP into FlashProtocol to get fTokens with a period set(e.g. 1 year).
  4. He stakes his fTokens into SousChef to earn passive SUSHI + fSUSHI yield!
  5. Step 2-4 can be done in 1-transaction or respectively.
  6. He can unstake his fTokens anytime and burn in FlashProtocol to get back aLP tokens.

Scenario 2: Flash Staking

  1. Chef Nomi wants an 1-year APY upfront instead of waiting for 1 year.
  2. He stakes his SLP tokens into AccruedLPToken to get aLP tokens.
  3. He flash stakes his aLP into FlashProtocol and get upfront SUSHI yield with a period set(e.g. 1 year).
  4. Done!
  5. He can return the given upfront yield anytime to FlashProtocol to get back aLP tokens proportional to the time left until the period collapses.

Contracts

Contracts can be found in: GitHub - ohgeez-dao/fsushi

AccruedLPToken

You can deposit SushiSwap LP tokens and get the equivalent amount of aLP tokens. The difference from the original LP tokens is that the SUSHI yield is automatically accrued to your aLP balance. Also, pending SUSHI yield is being optimized by the dynamic strategies to get higher profits.

FlashStrategySushiSwap

A FlashStake strategy to enable AccruedLPTokens to be used as principal and stakers get instant, upfront SUSHI yield.
You can also stake without instant yield and in this case you get fTokens that are minted from FlashStake protocol.

SousChef

By depositing your fToken you’re eligible for receiving newly minted fSUSHI rewards. In the first week, 300,000 fSUSHIs will be distributed and in 2nd week, only 1/10 of the circulating supply of the first week will be minted. (10x boost in the first week)
And during the 2nd week, only 99% of the first week’s circulating supply will be minted. During the 3rd week, only 99% of the second week’s circulating supply will be minted. This goes on and on.
Thus, you can reduce inflation rate of your fSUSHI by locking up your assets to FSushiBar.

FSushi - fSUSHI

A plain ERC20 token that only SousChef can mint.

FSushiBar - xfSUSHI

1% fee is posed as fee for upfront yield and 0.25% for plain staking. These fees will be distributed for xfSUSHI holders who locked up their fSUSHI. General mechanism isn’t that different from SushiBar of SushiSwap protocol.

FSushiMaker

A peripheral contract that swaps fee tokens into fSUSHI and transfer to FSushiBar.

FSushiRoll

A peripheral contract that helps users stake their SLP into SousChef in 1-transaction so that they’re on yield position and earn fSUSHI.

Tokenomics of fSUSHI

fSUSHI’s will be fairly launched with an initial distribution for SUSHI holders snapshotted in a historical moment.

Initial Distribution

  • 60,000 fSUSHI will be distributed for snapshotted SUSHI holders pro-rata their balances.
  • 10,000 fSUSHI will be distributed for OhGeez DAO members (veLEVX holders).
  • 30,000 fSUSHI will be distributed during the first week as rewards for SousChef stakers.

(3, 3) Distribution

Weekly emissions are adjusted as (last week’s circulating supply) x (99%) where circulating_supply is (totalSupply of fSUSHI) - (locked amount in xfSushi).

Meaning, assuming an initial supply of 100k, if 0% of the fSUSHI is locked for xfSUSHI, next weekly emission would be 99k. If 50% of the fSUSHI is locked for xfSUSHI, next weekly emission would be 99k x 50% = 49.5k. If 100% of the fSUSHI is locked for xfSUSHI, next weekly emission would be 0.

Below is a hypothetical spreadsheet that represents 512 weeks’ emissions under the assumption that 0 fSUSHI is locked for xfSUSHI.

If all participants lock, emission decreases to 0, if only 50% of participants lock, emission is 50%, however lockers increase proportionally to emission.

Thus; (3,3)

Dev Fee

10% of the amount totally minted fSUSHI can be allocated as dev fee. 50% of dev fee will distributed for OhGeez DAO and the rest 50% will go into SushiSwap treasury.

Request of grant for the operation of fSUSHI

I put my full-time 1 month into this project voluntarily to bring value to SushiSwap protocol and I’m pretty sure this will be one of the cutting-edge advantages over competitors.

I propose SushiSwap community to hire me and OhGeez DAO as the contributor of fSUSHI with 500k SUSHI grant for the next 1-year operation. After 1 year, the source code will be made public so anyone could use it for any purpose then but currently it’s protected by BSL-1.1 with licensor as OhGeez DAO.

Operating fSUSHI for 1 year includes:

  1. Hosting frontend for fSUSHI that’ll be up in 1 week from today(fsushi.org).
  2. User support in discord(either in OhGeez DAO or SushiSwap DAO)
  3. Technical support for SushiSwap core devs on FlashStake and fSUSHI (if needed)
  4. Technical support for devs who want to build on top of fSUSHI
  5. Periodical claim of dev fees into SushiSwap treasury (50%)

Roadmap

  • Snapshot(???): before the launch, SUSHI balance snapshot will be taken at a historical moment
  • Airdrop(2023-01-01 UTC): frontend will be hosted under fsushi.org with FSushiAirdrop contract deployed and eligible accounts can claim initial fSUSHI distribution
  • Launch(2023-01-05 UTC): the rest of the contracts deployed on Ethereum mainnet and users can start earning aLP, fTokens and fSUSHI.
  • Boost Finishes(2023-01-12 UTC 00:00): 10x boost for fSUSHI emissions finishes

Poll

Should fSUSHI be operated for the benefit of SushiSwap protocol by LevX and OhGeez DAO?

  • Yes
  • Abstain
  • No

0 voters

6 Likes
2

@levx.io Lot’s to like here, we talked before about some parts of this like SousChef, using receipt tokens for the yield bearing positions etc… Great to see ideas built on top of these to showcase what can be done with just a bit more composition.

I’d love to talk more about this…

I have a few concerns over status of contract audits and the timing.

Am I right in reading this as launch on January 5th?

Can you share audit status for the contract suite? We have auditors on retainer but they are booked for January.

4

I don’t trust audit firms and now we all know that audit service is merely a rubber stamp that doesn’t guarantee the safeness of contracts. I wouldn’t spend decades of thousands dollars for getting trust built on top of insecurity.

Yes it’ll be launched on Jan 5th without getting audited (just like how SushiSwap started) but with emergencyWithdraw() function that users can claim out their original amount of LPs no matter how many exploits were found (which I believe won’t happen, but just in case).

Maybe you could consider it too risky but we know that without risk, there’s no big gain.

If fSUSHI succeeds then obviously it’ll bring a giant value to SushiSwap. Otherwise, even though price of fSUSHI will reach down to 0 but people won’t lose any LPs.

If more good ideas on this protocol comes out from either core team or community after its launch, I’ll gather those and work on v2 contracts that’s more optimized(in terms of yield) and more aligned with the incentives of SushiSwap. But this time also, it’ll be a 1-2 months work that’ll be delivered asap.
I believe with these iterations that are accompanied by quick and frequent upgrades will strengthen the competitiveness of the whole ecosystem.

2 Likes
5

Yeah, doesn’t guarantee the safeness but for us as a public team we have to take steps to build confidence in codebases, and audit is just one of those. We use a high quality audit firm which have helped secure 100s of millions of TVL across Sushi products so far.

Agree! It’ll be an interesting experiment at least.

1 Like