Proposal: Sushi is Omakase

Sushi is Omakase

This proposal outlines clear, discrete, achievable and impactful objectives that do not require a Fortune 500 style restructuring or some sort of ‘bail in’ by a 3rd party.

Sushi is not a pick-and-choose, assemble it yourself a la carte menu of defi and degen products.

Sushi has a team of chefs that pick out quality projects, programs, incentives, etc, that make apeing into defi that much easier.

Sushi should be the default choice for people wanting to discover, trade, ape, and invest in DeFi.

Sushi is Omakase.

No, not that Omakse, the actual Japanese term, Omakse

Sushi Rules

Background

Proposal for Sushi Exchange and $SUSHI improvements

These are action-items/goals that this proposal seeks to implement within 90 days. It touches three main parts that are integral to the sushi community.

$SUSHI / Asset
  • Get SUSHI/xSUSHI listed as an asset on MakerDAO
  • Better parametrize incentives with new options
  • 24.14%SUSHI is currently staked, what can we do to improve this (promotions, airdrops, etc?)
  • Explore possible implementation of veSushi, an xSushi LP deposit grants voting rights on incentives (this may be suboptimal, which is why i am suggesting to explore it vs. implement it)
Onsen / Incentives
  • Setup a formal intake page for existing pools to request consideration for incentives other than the current google form process.

  • Offer Onsen benefits to those pools who are willing to provide a matching incentive

  • Establish a collaborative program with Market Makers that offers them the ability to provide quotes to orders (i.e. RFQ system )

  • Improve search functionality on frontend to more easily present users with assets trading on Onsen (e.g. push notifications, a seperate tokenlist perhaps, etc)

    Bentobox / Trading Experience
  • Integrate improvements to the existing routing contracts (on chain)

  • Integrate improvements to the existing routing logic (frontend)

  • Establish a referral programme for order flow

  • Create a new BentoBox Strategist program: BentoVault

Bentobox = BentoVault

Yearn has recently decided to no longer offer strategists a percentage of net profits from their plays, instead it chooses a collective payment scheme for all strategists. This presents Sushi a unique opportunity to capture some of this potential talent and offer an incentive for producing for Sushi: a percentage of the estimated net profits can be paid upfront (if and only if it has been vetted and proven to a high degree of probability) as a bonus.

Sushi makes it easy for anyone to become a defi chef. There is no bigger meal than that of want().

  • Make and market Bentobox like they are equivalent to Yearn Vaults
  • Leverage potential incentives by other networks to boost new and existing strategies as well
  • Start dogfooding Sushi rewards in bentovaults (why should other vaults farm and dump sushi?)

How is this different than inari you ask?

Inari presents the user with depositing an asset into Bentobox, whereas BentoVault presents the user with purchasing into the underlying Vault. This is a significant difference in UX for the end user: they don’t have to first purchase the token then deposit (this is 2 separate tx’s), they just have to buy (1 tx).

Improved Routing and Market Incentives

Improving the routing on both on-chain and off-chain is not difficult. What it takes though is community approval.

We have already developed improved routing contracts that will facilitate OpenMEV/Sushi Guard. This is actually a big change as previously this was all off-chain. What this means is there is now 90-95% of OpenMEV profits directly attributable on chain, where before it was a trust-based relationship. This is a big potential win for Sushi in that profits can be used in real time potentially for providing boosted incentives, rebates or for other purposes.

The important part of this is to be data driven, here is a github repo with some of the metrics and KPIs are being used + additional can use to improve the impact of incentives. Think gauges

Improving Onsen

Currently this is the intake form: Onsen Onboarding & Marketing Playbook - Google Docs

Onsen applications are examined based on existing liquidity. We can easily add an additional optional requirement of matching incentives for some % of total time that the asset is on offer at the bar.

There is already a preliminary portal that can be used for this see https://sushi-partner-portal.vercel.app/

Aggregating and Optimizing Order Routing

Three main items:

  • Implement price aggregation search for better pricing
  • Improve frontend computation logic with improvements from
  • Explore the usage of limit orders for a market maker RFQ system

The first two points are largely done on our end (we used this for testing some assumptions and to see what we should focus on for improving OpenMEV). We can implement this as a beta page for Sushi users to try out. Additionally new weights can be attached for assets that are in a Tokenmak reactor / Onsen / other promotional/incentive programs.

This third third point is more of an exploratory idea that I thought should be mentioned, this is an idea and not

Market Makers would be interested in participating in a new quoting system for Sushi pools. In fact I have already spoken to some and have gotten tentative agreements. These would be on Onsen pairings plus Miso launches. They would get a discounted trading fee across the venue in return they would have to commit to quoting some $DOLLAR value of quotes.

Best of all this system would largely be leveraging the limit order capabilities that have been launched.

Community Objectives

These points are for the community to discuss and provide feedback/ideas.

Highlight current partnerships and integrations

Tokenmak reactors are one of the more exciting things that can be used to great effect, and yet it seems there is little attention paid to this game changing protocol.

This ties back to improving documentation and developer relations. When you start thinking about the compounding effects of Onsen + Tokenmak + etc, you start wondering why anyone thought Sushi was in “trouble”.

Improve Developer Relations and Onboarding

This is an often neglected part of work, but it’s absolutely necessary. We want to be the default choice for developers to launch new products or offer new services to our userbase.

Being the default choice is a powerful primitive. For example, ask any developer what they would use to be able to accept credit cards online. 9/10 would say Stripe.

Here is a preview of something I put together over the weekend:

Matthew is adopting this among other changes in the new Interface monorepo here GitHub - sushiswap/interface: Interface

Remarks

This is a formal proposal that is open to community input and discussion. It is a draft version, so please excuse any irregularities or errors. I wanted to get this posted before the community call so that it could be discussed if the community thought it proper to.

Temp. Check.

For

Impower multisig to dully authorize these changes and implementation

Against

Negative, do not implement any such changes as detailed

Poll

  • Yes
  • No

0 voters

10 Likes

Hey @sambacha, thanks for the proposal here. I enjoyed the formatting and framing of a world where Sushi Chefs - the core team - prepare the products best for you: true omakase-style.

The video added much needed levity to the forum.

This analogy seems fitting with the Sushi theme and trilogy.

I’d be curious if the core team could comment on their thoughts of their willingness and belief in this proposal - we saw with Ondo that for a proposal to be successful community and core must truly be aligned.

Seems the community is in support at an early stage. I worry that there are lots of improvements and that the core team is struggling to breathe. Want to see their voice here.

6 Likes

This proposal seems great but it seems like there is a lot going on - several different sections and sub-points in each section.

Can we get a simple summary of exactly what the proposal would do.

Like:

Point 1: Let’s do A
Point 2: Let’s do B

…etc

1 Like

We agree with almost all of this proposal Sam and think it’s a great step towards making sushi the premier dex. Love the bentovault idea, great way to incentivize contributors. We are big fans of the idea of bringing more of the arbitrage logic on chain and seeing manifold more closely integrated. The more transparent and trustless we can be the better. We would be against a fee discount of any kind unless it applies to all traders. This isn’t the first time we’ve seen this idea. Of course market makers would salivate at it. We think this is a step backwards in multiple ways. Not only does this introduce more trust into the system which is contradictory to the other improvements on this proposal, but more importantly this is horrendous for DeFi market structure as a whole. Privileged relationships are also not really consistent with the ethos of DeFi and contradictory to the future many of us got into DeFi to build. This is top of mind for us coming off the frog nation debacle. If we strive to be the premier DeFi dex, we should be looking to innovate in other ways as the proposal already does.

3 Likes

Hi all, I’m an engineering manager at a bay area tech company while also leading a hedge fund with a 6 figure stake in Sushi. I want to help organize Sushi into a productive environment. I have strong negotiation skills, a background in psychology, and also have worked as a senior frontend developer at NYTimes, CNN, Digg.com, and many others for over 10 years. Please let me know if I can help.

2 Likes

ngl random spot to put this. You may want to just visit the volunteer channel in the discord

1 Like

Omakase it is!
Thanks for the proposal! I feel tho, improving the staking percentage would be something that must be discussed in more detail. Hope to see this being taken as a objective from the project’s health pov

1 Like

Will have a formal proposal this week, cheers

1 Like

Can you point me to this if it already happened?

1 Like