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.
- 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:
- 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.
- 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:
- 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;
- 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:
- 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;
- Encourage collaborating projects to migrate liquidity from Uniswap to Sushiswap whenever possible;
- Participate in Sushiswap governance to grow SUSHI long-term value, since we’d be one of the longest-term stakeholders in the ecosystem
- Explore opportunities for Harvest and Sushiswap to collaborate on co-investments with the Council of 69
- Collaborate on solutions to fair-launch project challenges like best practices and infrastructure for recruiting and rewarding community contributors;
- 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.