Sushi: privacy-enhanced defi

Our next Battlefront :crossed_swords:

Our blockchain ecosystem is changing :boom: On September 29, 2020 Gemini Exchange, one of the first licensed ethereum exchanges in the United States enabled support for Zcash shielded withdrawals. This is the first time shielded ZEC withdrawals are available on a regulated exchange.

“It also demonstrates that with the right controls in place and the proper education, regulators can get comfortable with privacy-enabling cryptos” [quote]

Kraken alongside their newly awarded U.S. banking license on September 16, 2020 continues support for monero-usd trading pair. U.S. regulations are among the most rigorous in the world, yet these Centralized eXchanges are paving the way.

The Litecoin community is currently working with the Grin/Mimblewimble community implementing fungible and privacy focused properties. Litecoin continues ongoing support from regulated CeX’s. We are also witnessing some of the largest CeX’s worldwide participating in the Liquid Network Federation. Liquid Network has confidential transactions built in.

In this next phase, privacy will be a major battlefront.

Sushi Leading :rotating_light:

Privacy features will be an important aspect of Decentralized Finance. Currently, it is mostly unexplored and we have an opportunity to place sushi at the forefront.

Privacy enhancing is not about supporting “bad actors”. It is an essential component for sovereignty, safety and security.

Ethereum is transparent by design. Increasing and maintaining operational security has become absolutely crucial. By developing and marketing our privacy features sushi could see increased volume across the platform. Increased volume will bring higher earnings from fees rendered. This revenue will be indispensable and these improvements are in the best interest of sushi stake holders.

Objectives, Motivation & Our Future :night_with_stars:

We must consider adding privacy features to our sushi-ecosystem. Features that could attract Volume to our platform should be explored or at the very least discussed.

There is currently no AMM that offers privacy tools or features.

  • Incentives for Liquidity Providers offering better opsec for wallet management could increase our Time Value Locked. (yūrei-pools) :ghost: :cyclone:

  • Our privacy features could incentivize traders/swaps from other platforms and chains. Increasing Daily Trade Volume. (guarded-swaps/yūrei-swaps) :ghost: :sushi:

  • First swap/lending platform with privacy built in :ghost: :sparkles:

We have changed our sushi tokenomics. Our emissions will taper off, our hard cap set. How will we attract more liquidity and grow our trade volume? New liquidity from borrow/lending, limit orders, weekly pool menu. What is our future outlook? Somewhere on L2 or cross-chain bridges. How can we remain relevant in this constantly evolving landscape? Privacy, Privacy, Privacy (opt-in yūrei-pools/swaps)

While we grow our offerings and expand, if we focus our efforts on privacy and continue to develop the quality of our AMM+ our harvest will surely yield abundance.

To Poll or Not To Poll
There is no poll. I would like to spark discussion first and foremost.
What do you have to say?

. . .
tldr :small_blue_diamond:

bad actors, law enforcement and regulators are no longer relevant reasons to avoid privacy-enhanced properties.
We can pave the way sushi: privacy-enhanced defi :sushi:

:woman_farmer: we started as an AMM for the people, privacy is very much for the people :earth_asia:


As much as I’m interested in showing mempool hunters a middle finger, we should be wary of the heat from overzealous extrajudicial regulators. Especially after a SEC commissioner said they will have to turn their attention to ‘painful’ regulation of defi. While current elections debacle is taking most of the government attention, it will be over quite soon.

P.S. I don’t think Winklevii would be allowed to support non-trackable funds movement, until they have some sort of arrangement to track those funds.

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Thanks for the response Graine
While I do understand your sentiment, being “wary of the heat” could actually end up hurting us. We have a chance to offer these solutions before others do. It is only a matter of time. It is not an if, it is a when. It could also be an opportunity for positive publicity. Overall, regulation in defi is inevitable, the question becomes are we stifling progressive features out of fear or something else?

and also: Mimblewimble extension blocks testnet is running. Do you believe ltc would get delisted within the next 12 months before mainnet launch?

Mimblewimble is developed by anonymous devs. Sushi isn’t.
The delisting will happen, whenever the regulators deem it so. Or tip off the exchanges to do so preemptively. Just like what happened to privacy coins in Japan.

The only way to have a privacy solution is to have it developed completely separately from the sushi devs, funds, and make it optional and independent. The safety of LPs should be a primary concern.

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Two thoughts. 1) US is more or less making the idea of ‘private’ a non starter. Take it as you will, but if you want to to grow a platform, it can’t be a ‘private’. Any obfuscation of identity makes it a target for US laws. You might think they don’t apply to you, until US Gov goes after you and yours. Not trying to scare or try to make this a non-starter, just stating the obvious. If we make this DEX a privacy first platform, we might end up getting shut down quicker than you can say quick. Yes we can fight back, but no it’s not that easy. 2) If anyone wishes to go that way, SUSHI is an open source community, fork project over and start with ‘privacy first’ approach. This way we have two solutions that are independent that can provide same services w/o impacting ‘all’ investors… my 2 sushi


@noonatnite Secret Network (privacy preserving smart contracting platform) has recently launched a front-running resistant AMM. Secret Network brings Ethereum assets to its chain as privacy tokens. These tokens can be sent anonymously or used in a private swap. IT’s similar to @littlejohn 's suggestion of a forked product - even though it works very differently.

There’s currently ~$65mn of ETH assets on SN and a yield farming campaign for secretTokens with +$250K liquidity. Sushi is also enabled on Secret Network, however doesn’t qualify for rewards yet.

Other private DeFi application on Secret Network is an OTC product where secret tokens, including Sushi, can be auctioned for other secret tokens.

This is a way to provide Sushi holders and Ethereum users in general.

There’s another yield farming opportunity for SCRT for Sushi holders starting next week as well. Here is some more details.


I was also about to just say Secret Network launched SecretSwap this week :slight_smile: Not only does it have privacy features, but it also eliminates front-running!

A bridge to might be an option Sushi, xSushi and the majority of erc20 tokens to include bitcoin and monero can actively be shielded and traded.