Sushiswap <> Harvest Vesting Proposal

Hey all! This is a Bread, a food-based developer of the Harvest collective.

Harvest was the first yield aggregator to support Sushiswap, and have accumulated 2/3rds of vesting Sushi that will start to be released at the end of April, for another 6 months or so. Our contracts are proxied, and we’ve prepared a strategy update that will allow us to claim the Sushi from the Merkle distributor and then hold the entirety of the claimed SUSHI with a 1 year lockup and 2 year vesting (on top of the previous 6 month vesting) and we’d like to run this idea by the Sushiswap community and stakeholders.

Starting around October 11th, 2020. Harvest has been contributing weekly FARM rewards to drive users to the Sushi pools, totalling in the millions in aggregate. The FARM rewards made it more attractive for people to farm sushi, by resolving the uncertainty around the 2/3rds of unvested SUSHI.

We provided an easy to use interface to access Sushiswap, helped to alleviate network congestion by batching thousands of transactions, and make participation economical for smaller asset holders. Harvest brought hundreds of millions of dollars in liquidity to Sushiswap in the early days, paying millions in Harvest FARM incentives to depositors to boost their profitability in exchange for taking on the risk of uncertainty about the 2/3rds SUSHI vesting process, when things at Sushiswap were in flux and not as stable as they are today.

My proposal to the Sushiswap community is to use this vesting opportunity to align incentives for the long term. In the past month, Harvest has been preparing and deploying a series of new contracts to demonstrate a commitment to collaborating with Sushiswap.

  1. Launch of the Sushi Bar Vault. This vault accepts SUSHI, deposits it into the Sushi Bar, and then deposits the xSUSHI into Aave for extra yield. It takes no fees, sells no SUSHI, and also offers auto-compounding iFARM rewards to depositors. Anyone can deposit into this vault, and it is also used as infrastructure for another series of no-sell SUSHI vaults:
  2. Launch of Sushiswap HODL Vaults. These vaults accept Sushiswap LP tokens, then automatically harvest SUSHI rewards and deposit them into the Sushi Bar Vault on behalf of users. It takes no fees, sells no SUSHI, and also offers auto-compounding iFARM rewards to depositors.
  3. Launch of 1INCH-to-Sushiswap liquidity migration strategies for 1INCH vaults. When 1INCH liquidity incentives ended, Harvest was able to seamlessly convert 1INCH AMM LP positions into Sushiswap LP positions in the Sushiswap HODL vaults. This moved a large amount of 1INCH LPs directly into Sushiswap LP, without needing user interaction and saving gas fees in the process.

Our proposal if we were to receive the 2/3rds of vested tokens, as originally understood:

  1. Move FARM liquidity incentives from Uniswap to Sushiswap. Use Sushiswap whenever possible for future Harvest liquidity provisioning, including liquidity self-provisioning by the Harvest treasury;
  2. Deploy a SUSHI vesting contract that has been prepared. Vested SUSHI will be deposited in Sushi Bar; this vested SUSHI has a 1 year lockup, and then another 2 years of linear vesting. (On top of the 6 months from the previous vesting schedule).

In addition, Harvest proposes to:

  1. Prioritize Sushiswap products and integrate Sushiswap-related vaults first; Harvest is first-to-market with many vaults and can broker collaborations on incentives that bootstrap new token launches, bring valuable edge liquidity to Sushiswap, and bring TVL to Harvest;
  2. Encourage collaborating projects to migrate liquidity from Uniswap to Sushiswap whenever possible;
  3. Participate in Sushiswap governance to grow SUSHI long-term value, since we’d be one of the longest-term stakeholders in the ecosystem
  4. Explore opportunities for Harvest and Sushiswap to collaborate on co-investments with the Council of 69
  5. Collaborate on solutions to fair-launch project challenges like best practices and infrastructure for recruiting and rewarding community contributors;
  6. Collaborate with Sushiswap’s multi-network expansion plans.

These are big changes to Harvest that would happen if we were to completely move over to Sushiswap in this strategic alignment, and we’d like to get feedback from the Sushiswap community and community leaders.

We’re interested in working on something that can be mutually beneficial in the longterm (3 years is a very long time in DeFi), so we’d be making a very large commitment to the future of Sushiswap.

Let us know what you think of this proposal. We have strong communities and we’re excited to find more ways to work together.

https://harvest.finance

29 Likes

100% yes to this … I can elaborate but why bother.

2 Likes

100% yes! This seems like an amazing proposal and a shining example of partnerships that can come out of this :slight_smile:

5 Likes

Some great ideas, looks like the Curve DAO should consider this 2/3 vesting.

3 Likes

As someone who is both long FARM and SUSHI since the end of UNI LP mining in November, this seems like a no brainer.

FARM brought a quarter of a billion of Liquidity over when Uni mining ended. It’s probably not an exaggeration to say that Sushi is as dominant as it is today in part, thanks to that huge liquidity migration facilitated by harvest finance in those early days

Both projects will benefit from this proposal, Sushi holders get reassurance that the 2/3 vesting will not be dumped on the market and FARM holders get a huge stake in one of the pre-eminent DEX on the market.

This is not even accounting for the benefits a formal partnership between FARM and Sushi would bring!

Wholly support this proposal.

6 Likes

Hello all! I am a CM from Harvest Finance. Please let me know if you have questions about this proposal, and we have also opened a dedicated channel in our Discord server for discussion.

5 Likes

I must say after reading the proposal, it is clear that the harvest team has spent a long time coming up with a long-term, mutually beneficial proposal for both harvest and sushi.

Benefits to Sushi:

  • Aligning itself with a protocol which can continuously funnel liquidity to Sushi, increasing TVL and lowering slippage
  • Sushi users which stake on harvest receive $FARM rewards and compounding without paying for gas in the HODL vaults
  • Low price impact risk due to 1 year lock up + 2 year vesting

Benefits to Harvest

  • Harvest would be financially incentivised to contribute to the success of Sushi
  • Harvest and Sushi can collaborate on cross-chain liquidity provision
  • Harvest and Sushi can source on mutually beneficial deals through the Council of 69, which is harvest’s angel investment fund

Looking forward to what both projects can come up with!

8 Likes

I am a big fan of this proposal. Let it happen!

4 Likes

I definitely support this proposal, and it sets a great example for other projects aligning themselves with Sushi.

5 Likes

I like it! Aligns the incentives of both protocols quite well. As gas continues to price out smaller players, collaborating with teams like Harvest bodes well for the retail users of Sushi. I think the lockup period is adequate to reduce Sushi price impact, especially considering it was already 6 months deferred.

4 Likes

I support this proposal, well reasoned and mutually beneficial.

7 Likes

As a holder of both XSUSHI and iFarm I am fully on board with this proposal. Would love to see Harvest and Sushi building together.

4 Likes

Looks like this provides a ton of value moving forward for both communities. Well done sers

4 Likes

I love this proposal. After I saw the twitter announcement from Harvest, I immediately made a deposit on their protocol for the first time since their exploit.

5 Likes

Full support for this excellent proposal.

2 Likes

As a holder of both Sushi and Farm I love this proposal. It adds to the value of both project and I think it is a win win for both projects

2 Likes

As a holder of Farm and Sushi, I am optimistic about this. I feel like the Harvest team put a lot of thought into the proposal and seems like there are benefits to both sides. It also incentivizes Harvest to promote and collaborate with Sushi longer term which is great and hopefully leads to partnership between both platforms.

2 Likes

Interesting proposal. Seems to be time to replace the BUY FARM link on Harvest for a Sushiswap pool :stuck_out_tongue_winking_eye:

4 Likes

personally i would love to see this. Sushi has been much more innovative and forward thinking than Uni and they community here is awesome. uniswap’s community is nonexistent

1 Like

very good proposal i will wait it

1 Like