Some ideas for sushi strategy (GoldenTree)

gm sushi

As promised in our intro post, we wanted to start off with some broad product ideas for community discussion. These are just initial ideas, but we think it’s important that the community starts exploring the different paths available now. This is not a proposal, more of a menu of potential proposals we think could be value accretive for Sushi to explore.

We aim to focus on improving what we view as Sushi’s greatest competitive advantage: flexibility and wide set of product offerings. We think the best way to do this is by showcasing how these products can work together in novel ways, and work to provide a better user experience for everyone in DeFi.

Some overarching questions to consider:

  • How can we have the different products can work together to create a more robust experience?
  • What specific other advantages does Sushi have (such as the ability to move cross chain more effectively)?
  • Who are the types of users that will provide the most value?
  • What will set up Sushi to capture users on a go-forward basis?

The goal here is set Sushi up to be a long term winner, by attracting new users as they filter in to the DeFi market and converting current DeFi power users to use our products.

General Ideas:

  • Improve the landing page to offer a menu of items in addition to just the swap product. The current homepage doesn’t effectively convey all the products that Sushi has to offer
  • Make renaming of products consistent and have the names be immediately explanatory
  • Commission studies on how users interact with the current homepage, and start the redesign from a data first basis (say, a focus group of DeFi users)
  • Create tutorial videos for each product, to broaden adoption and understanding (think this is in progress!)
  • Identify high potential candidate pools that can be poached from other DEXs
  • Partner directly with market makers once concentrated liquidity goes live, and other decentralized liquidity providers
  • Deprecate MEOW

Furo (DAO Streaming)

  • Allow streams to be deployed via a strategy. For example – let a dev use Kashi to borrow against the next 3 months of their salary. The payer of the stream can specify how many vesting tokens are able to be deployed in a strategy.
  • Unvested tokens (today issued as NFTs) may benefit from having their own token standard. This would allow us to specify parameters such as ability to borrow.
  • Create a marketplace for unvested streams. Similar to how people trade SAFTs and other token agreements today.
  • Build out a sales team to accomplish Dao to Dao sales, to raise awareness for the existence of Furo as a potential product solution (believe it is currently underappreciated).

Shoyu

  • Focus on gaming NFTs, and leverage key partnerships such as Illuvium to expand into ecosystems such as IMX. As the metaverse/gaming space expands, Shoyu can carve a niche.
    • If we lean in to this theme, we could develop a Launchpad for games to launch on Shoyu, including trading game NFTs and Furo Stream NFTs which result from the token having launched on Miso.
  • Find other niche areas, like gaming, that are currently underserved. It makes no sense to have gaming NFTs sit under the exact same interface as PFP NFTs. Create simple products to serve said niche.

Miso

  • We start with the premise that Miso is primarily a “BD” product – meaning that we need to convince projects to launch with Sushi. One thing Uniswap does well is capture a large share of new token launches. We should craft Miso to take market share via these launches moving over to SushiSwap.
  • To that end, a “personalized” or “white glove” token launch product is the easiest way to get “exclusive liquidity” with a project via locked liquidity in sushi swap. If we make the product super easy to understand, we should be able to garner market share. We could build a simple token launch tool with parameters as well, and design an accelerator to help new projects launch.
  • Example of composability: Launch token on Miso with vesting on Furo. Let Furo Stream NFTs be traded on Shoyu. Let Furo Stream NFTs be borrowed against on Kashi. Maybe borrower gets better lending terms if the use the borrowed funds to LP on sushi or otherwise deploy funds in another Sushi product.

Kashi

  • There are two primary uses of over collateralized lending: Leverage and Shorting. Right now, Kashi primarily is used for shorting because of 1-way borrow/supply.
  • Consider turning isolated markets into two way deposit/borrow isolated markets (requires research into stability properties)
  • Consider deploying rari/fuse style pools where you supply a set of assets, and those assets are used in a BentoBox to give leverage to some users deploying a strategy (say, leveraged short LP).

Trident

  • Focus on longer tail assets.
  • Focus on gaming assets. May be ok to allow for more centralized control of certain pools for cases like games wanting to influence their economies.
  • Steal high volume pools from other DEXs. Something too small for Uni to care. Maybe even make it a joke, since whole point of sushi is a vampire protocol. Create a meme around it. Announce when a pool is about to be “reVamped” or some memeable format. Could be an aggressive and interesting marketing play.
  • Partner with smaller, more speculative stables.
  • Partner with non-USD stables more. Steal them from Curve.

BentoBox

  • All very speculative, half-baked ideas, but BentoBox has a lot of potential.
  • Instead of referring to “THE BentoBox” is it possible to have isolated BentoBoxes with different (some riskier) strategies?
  • At its simplest level, Bento is a vault structure. How to maximize usage of this structure? For example, could have permissioned and permissionless BentoBox structures, where users can add capital and/or lend to either. Maybe have no fees on structures that keep all capital in the Sushi ecosystem and charge fees on ones that use external platforms.
  • Bento generally is used too much in public marketing in our view. People don’t really understand what it is, so would probably be better to just always focus on so-what for Sushi end users.
  • What is the maximum capital efficiency that can be gotten out of a BentoBox while still keeping stability in the system? For example, keeping a virtual balance of furo deposits while keeping them idle on LP liquidity and Kashi at same time.

Example of an overarching idea to get the wheels turning:

Create a one-stop shop for gaming/metaverse launches.

Launch game token on Miso. Lock token liquidity on sushiswap. Vest those tokens on Furo. Trade streaming contracts (which are NFTs) on Shoyu. Launch game NFTs on Shoyu. Trade game NFTs on Shoyu. Borrow against both streams and game NFTs on Kashi.

One platform to encompass everything a game may need to satisfy its economic needs. We think it’s worth talking to some major games to understand what other features (say, an NFT crafting page on Shoyu) they would need to use Shoyu as a one-stop play.

We’re happy to discuss any of the ideas above! As we said, these are just our suggestions that we wanted to put out to spur some community discussion. For any direct comments, feel free to reach out to me / Mark/ Avi on twitter.

Cheers,

The GoldenTree/GoldenChain Team

• Legal Disclaimer
This note is not intended to provide or constitute investment advice in any way; further, nothing herein is intended to influence any investment decisions or serve as a solicitation for any investment. A fund managed by GoldenChain owns Sushi tokens. GoldenTree and its affiliates are not affiliated with and do not control Sushi in any manner other than the voting rights associated with the Sushi tokens managed by GoldenChain. GoldenTree and its affiliates have no duty or other obligation to or relationship with the Sushi protocol, its employees, management or its token holders. GoldenTree may operate as a liquidity provider on Sushi in the future and may receive token rewards in connection with that activity. This note was not solicited by any party.

2 Likes

Start buying up the competition with the sushi treasury. buy them out with your own stuff.

1 Like

Thanks for putting together the post. This is definitely a great start, but I think it’d probably be better to consolidating on areas of strength rather than spreading thin across multiple verticals. Sushi’s greatest strength lies in the UI above all else (quick plug: https:// mirror.xyz/williamx.eth/U9XBw_EsutvQnCGo1VMAWXBDCOrSPVIXHZ0uzI-qFes).

For Furo, there’s little margins in payment streaming, and DAO tooling is crowded. It certainly could be an interesting platform play to roll out other products as DAOs see fit, but it seems difficult. I think potentially good here is partnering with an existing player (Magna, Llamapay) to offload the burden, but whitelabel the product. I definitely think trading of unvested token vouchers is interesting and worth exploring further.

For Shoyu, differentiating into a gaming NFT marketplace is also interesting, but NFTs haven’t been an area of strength. In order to be competitive, there’d need to be a rearchitecting to become more aggregator like (like Coinbase NFT has found). This should either be put to the side, or whitelabeled right here.

Miso is a great place to double down and show how Sushi works and how it can help. Totally agree, the value prop needs to be spelled out via BD and marketing.

Kashi is worth developing out since lending and AMMs are highly tied. I wouldn’t rule out whitelabeling the lending protocol but a deeper partnership would be interesting – happy to chat over the DMs on what this could look like.

Trident, not much to say but agreed.

Bentobox is interesting, there’s a large amount of structured products being developed out, and Sushi should definitely begin innovating here, especially as they can play hand in hand with the AMM.

honk yeah i’m down for the MISO focus - picking up from where it was left off in like sept last year:

would love to see it go all the way to some sort of DAO/“crowd sourced” projects and have the three tiers - White Glove launches, MISO/Sushi Community curated & the raw, decentralised rug market

i mean i guess the other product ideas are cool or whatever but we all know MISO is the hot boi on the block with the rockin’ body and the fresh sneakers - it’s a metaphor