Update#1: There is an official proposal in the Bancor’s Snapshot for considering such a merger Snapshot
Shiba means flower in heaven
- SUSHI changed the world. The vampire attack that created SUSHI as a community (not VCs masquerading as community ) led project was brilliant and SUSHI went on to earn its place in the wider DeFi Ecosystem
- SUSHI has been without a clear direction for a while
- SUSHI LPs have lost an ENORMOUS amount of value to impermanent loss
- I personally Joseph Delong, but I can confirm that I googled for at least 6 minutes and Bancor does have more cool-tempered and calm leadership
- Time to be honest, Bancor invented the AMM. Sushi invented the vampire attack, let them merge and offer first class AMM protection to all liquidity providers
At time of writing, there is currently about 3 Billion USD worth of liquidity in Sushi - down 30% in the last month alone.
However, leadership is admittedly in shambles, the team may be a slight bit spread too thin (28 deployments if I am counting correctly) despite a large number of food-themed products.
However, if there was an option where LITERALLY ALL STAKEHOLDERS WIN, I would consider it. Read on sers…
The Real Merge
Bancor recently hosted a crazy party in Miami.
In fairness, they had reason to celebrate following their announcement of the upcoming Bancor 3.
It’s an LP’s wet dream.
Now here is where it gets interesting. I was reading their upcoming features, and it occurred to me that Bancor and Sushi can merge….hear me out……everyone wins……even SHIBA.
Capital Efficiency ≠ Leverage (sorry Uniswap V3). A recent study showed 50% (!) of LPs are losing money in Uni V3 vs simply HODLing their tokens. That ain’t gonna last long.
Capital Efficiency is taking separate massive pools of liquidity, and connecting them into one giant Omnipool, which is coming in Bancor V3
This is clearly the best outcome for traders.
SUSHI LPs really HAD two choices.
Choice 1: Stake in a pool with large LM rewards (WGMI)
Choice 2: Stake in a pool and lose a bunch of money to impermanent loss (NGMI)
Now, post suSHIBAncor, they will have 2 new choices.
Choice 1: Stake in a pool with large LM rewards and impermanent loss protection (WGMI+)
Choice 2: Stake in a pool with impermanent loss protection (WGMI)
As you can see, SUSHI LPs will effectively make it, regardless of their choices post merger. Instead of having a 50% chance to make it, they will have a 100% chance to make it.
If Bancor’s upcoming V3 will have limitless pools. This means that not only can 3 billion dollars of assets be migrated over without issue, they would all be single-sided stakes.
I’ll spell it out. If a token is staked single-sided, and has full IL protection, the LP tokens can only rise when denominated in the staked token. Seems like excellent collateral to do all the degen shit I (we) love.
Now when I model out Bancor LP tokens in Python you see the chart below:
SUSHI Core Team:
These guys are clearly working in a rough environment. We will first approve their 200,000 SUSHI bonus. If they are still interested in working, I’m sure Bancor can always use new solidity devs. If not, I’m sure we will be seeing some forks on BSC and Huobi chain.
Now at the risk of offending people, I still don’t understand why the pools have ETH and TKN without SUSHI or xSUSHI. My grandfather told me that each DeFi protocol was only allowed 1 token that doesn’t really have utility. Sushi has broken this age old rule.
I have already coded the token merge script that will take the following actions:
- Lowercase the first two letter of SUSHI
- Lowercase the last four letter of BANCOR
- Combine them to suSHIBAncor
- Statistically speaking, all things SHIBA will moon
A future proposal can deal with xSUSHI, because for the life of me I don’t understand why it’s needed. And if we are being really honest, you don’t either.
If traders, LPs, Hodlers and the team are all better off, I can think of no reason this should not pass.