Summary
This brief overview summarizes what’s wrong with Sushi today, the challenges you face, and what a more robust feature can bring. The SushiSwap token price has fallen 95% from its peak value and could fall further unless major changes are made. My analysis suggests that the crypto winter isn’t over, and that we are now entering a period akin to the ‘dot.bomb’ period in the late nineties and early 2000’s when the majority of internet start-ups failed. On the bright side, institutional demand for digital assets (crypto and security tokens) is set to boom!
Focus on Sushi’s key brand: ‘best Automated Market for Digital Assets, on any chain, with the deepest liquidity, best services, and lowest fees.’
Identify growth capital including fee sharing, VC funding or token sales.
Create new legal structure and apply for regulatory approval.
Simplify product roadmap, focusing on key AMM functions.
Develop a new commercial model to attract volume and promote deep liquidity.
Sidebar non-core functions into a Venture Development arm and partnerships.
Hire professional management overseen by community-elected Board.
Build a supportive team blending the interests of all stakeholders (consider innovative voting techniques)
Elect a leader who will listen to the community.
Expect fierce competition… Be ambitious!
Motivation
Elections are about two things – trust the same people and their way of working or change and install a new regime. I have deep experience of exchange operations and financial markets, and I’m offering change. You need a businessman who knows crypto rather than a developer tackling complex business issues.
Specification
Sushi must evolve in its legal structure, commercial model, financing, and management to be more than Uniswap 2.0 – your brand should be to become ‘the best Automated Market for Digital Assets, on any chain, with the deepest liquidity, best services, and lowest fees.’ (In future most financial assets will be digital tokens and there will be an open market to trade them governed by competing blockchains.)
As you prepare for final interviews and get ready to vote for a new Head Chef, I would ask you to consider these 10 points:
You need a manager, not another developer.
Elect a leader who will listen to the community, but who will lead!
Hire professional management overseen by community-elected Board.
Focus on Sushi’s key brand: ‘best Automated Market for Digital Assets, on any chain, with the deepest liquidity, best services, and lowest fees.’
Develop a new commercial model to attract volume and promote deep liquidity. Solve structural problems which limit growth – attract higher volume with tiered fees
Offer value added services – protection such as hedging Impermanent Losses (Perp’s or Options)
Reduce the roadmap, focusing on key AMM functions. Sidebar non-core functions into a Venture Development arm and partnerships.
Identify growth capital including fee sharing, VC funding or token sales.
Create new legal structure and apply for regulatory approval (Switzerland?) … the OFAC/Tornado action and Gensler’s view that PoS crypto = securities are a sign of things to come … you will be regulated or risk being prosecuted.
Build a supportive team blending the interests of all stakeholders (consider innovative voting techniques).
As if to highlight the price risk of NOT being regulated, the post-merge sell off in cryptos generally and ETH in particular, can be tracked back to this statement by the SEC’s Chair Gary Gensler: SEC’s Gensler Signals Extra Scrutiny for Proof-of-Stake Cryptocurrencies: Report
Speaking after the Merge (but not specifically about Ethereum), SEC Chair Gary Gensler said proof-of-stake cryptos could be investment contracts that subject them to securities regulations. SEC’s Gensler Signals Extra Scrutiny for Proof-of-Stake Cryptocurrencies: Report.
This is an existential threat to any project which relies upon token emissions and PoS consensus. It DOES NOT signal the end of crypto; it DOES argue for a regulatory plan to move forwards. Sushi should, as a matter of urgency: (1) Review its legal basis, (2) Consider Regulated Options, and (3) Consider its RoadMap and Capital Base, and fund raising needs, in this light…
Key point is #69: “The U.S.-based investors in Balina’s pool irrevocably committed to the transaction when, from within the United States, they sent their ETH contributions to Balina’s pool. At that point, their ETH contributions were validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country. As a result, those transactions took place in the United States.”
ETH TRANSACTIONS IN THE US MADE SPARKSTER AN UNREGULATED ICO.
What does this say for every other transaction validated by a network of nodes on the Ethereum blockchain? A simple solution is to transition various ETH tokens to become Reg D/A exempt investments …