As part of the broader Treasury Diversification plan, we propose that a portion of the ~51m SUSHI that is currently being held by the Sushiwap Treasury be used to onboard institutional investors. SushiSwap has been a DeFi Community darling since inception and at this juncture we feel that it’s ready to welcome established crypto funds and cement SushiSwap as a household DeFi blue chip. Coming off the back of Sushi’s greatest month to date(insane volume across ETH and Polygon), Sushiswap boasts extremely resilient fundamentals with an attractive pipeline of upcoming releases.
Deal Size: Up to $60m (25% of Developer Treasury) with up to 10m allocated to community members.
Vesting Terms: 6-month cliff followed by 18 month linear vesting
Base Case Price: range of 20-30% discount to 30-Day TWAP (ending day of snapshot proposal if accepted)
Additional note: Purchased SUSHI will be converted into xSushi and receive xSushi yield whilst vesting
Use of Proceeds:
Deployed into productive assets via safe yield solution:
- yearn vault (profits redirected to xSushi holders)
- LP in a stable pool on Sushi to generate liquidity, fees, arb opportunity to xSushi holders
- Seed liquidity in key Kashi markets
We deem it most efficient to soft-sound interested parties privately and confirm allocations ahead of a governance proposal. Most interested parties already have stakes in SUSHI and voting through this capital raise via governance should be a formality.
We would also offer a public segment of up to 10 million for community members willing to participate.
Both would be executed via Miso provided we can get the new vesting module formally verified and audited in a timely manner otherwise we would fallback on similar contract to Lido for vesting and release schedule.
Please see MCDEX’s latest capital raise which progressed smoothly as precedent: https://forum.mcdex.io/t/proposal-20-raise-7m-fund-for-mcdex-dao/298/3.
Minimum Investor Ticket Size: $250k (uncapped)
Confirmed Strategic Investor List (in no particular order):
- Lightspeed Venture Partners (co-lead)
- Breyer Capital
- Spartan (co-lead)
- Dragonfly Capital
- True Ventures
- Pantera Capital (co-lead)
- Zee Prime
- Multicoin Capital
- Blockchain Capital
- Future Fund
- CMS Holding
Co-written with Wangarian