SushiGuardRouterV01
The SushiGuardRouterV01 implements MEV Protection at the protocol level for Sushi users. Profits from arbitrage (via backrunning) are collected on chain in a transparent manner. This will enable Sushi to generate and capture profits normally realized by arbitrage bots, in protocol. The profits are split with Manifold Finance for operating the additional infrastructure and maintenance required to operate it. Below you will find the reference soft proposal, the audit, and costs breakdown by category with further details according to the cost subtype.
Unfamiliar with the existing Sushi Guard implementation? Read more at the sushi documentation website, Sushi Guard | SushiSwap
The router implements features such as:
-
It is gas efficient in all circumstances, meaning trades will always cost less than they do now. The benefit for this is reduced transaction costs.
-
The back running trades that are executed leverage Kashi/Bentobox (as well as Aaave). This means the Sushi ecosystem will benefit in circumstances in which the router executes a backrun transaction.
-
The back running trades are made on-chain, and emit an event, āSushi Guardā. This means that users can track how much the router has made from them, which would enable also Sushi to do account specific reimbursements (the original promise of YCabal if you remember).
Estimated Economic Impact
Preliminary numbers range from $420,000 USD to $1,840,000 USD in profits monthly. This includes all chains that it is deployable to (chains in which Aave is also on).
Model of usage
Soft Proposal Link:
Audit
Specification and Design Document
Costs and Timelines
CommodityStream (Manifold Financeās parent holding company) is willing to help finance the costs of te routing contract, as the benefits will be enjoyed over a life cycle yet the cost is upfront. We submit this outlay as an initial starting point for consideration, though we feel it fair and approximate. This may be of benefit to the yet-formed SushiDAO vis a vie taxes.
The Notion page includes an āOmakaseā cost category that should be ignored for now
Legal Notice
THESE MATERIALS ARE PROVIDED āAS ISā.
The owners and contributors expressly disclaim any
warranties (express, implied, or otherwise), including implied
warranties of merchantability, non-infringement, fitness for a
particular purpose, or title, related to the materials. The entire risk
as to implementing or otherwise using the materials is assumed by the
implementer and user. IN NO EVENT WILL THE OWNERS AND CONTRIBUTORS BE
LIABLE TO ANY OTHER PARTY FOR LOST PROFITS OR ANY FORM OF INDIRECT,
SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY CHARACTER FROM ANY
CAUSES OF ACTION OF ANY KIND WITH RESPECT TO THIS DELIVERABLE OR ITS
GOVERNING AGREEMENT, WHETHER BASED ON BREACH OF CONTRACT, TORT
(INCLUDING NEGLIGENCE), OR OTHERWISE, AND WHETHER OR NOT THE OTHER
PARTICIPANT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE."