November - December 2021, Sushiswap will officially launch Trident, MISO v2, Shoyu v0 and along with a number of other important updates.
These are pivotal steps toward more ambitious goals. In today's article, we will learn what they are, why they are important to the Sushiswap ecosystem, and the benefits and challenges they bring.
The Beginning of the Sushiswap Ecosystem
Sushiswap launches in Q3/2020 after Uniswap launch. Initially, Sushiswap was a standard AMM fork from Uniswap v2, but the innovative approach to tokenomic design made Sushiswap enthusiastically received by the Crypto community, more specifically, part of the transaction fees incurred from Sushiswap AMM will be Accumulating value for the project's native token is SUSHI.
Besides that, Sushiswap was also very successful in using Liquidity Mining for bootstrapping the initial launch of Sushiswap, causing Sushiswap's TVL to grow to billions of dollars in a short period of time.
Liquidity Mining has many advantages, but its disadvantages are also starting to show, the high inflation through Liquidity Mining creates a great selling pressure on SUSHI price for a long time. Besides, the issues surrounding the honesty of Founder Sushiswap make the project's problems worse.
To understand more about how Liquidity Mining works as well as its advantages, please refer to: What is Liquidity Mining ?
Overcoming those difficulties to continue to develop, at present, Sushiswap has been recognized by the majority of the DeFi community as a giant and fastest growing generation in Crypto:
- Sushiswap is leading the way in multichain deployment, deploying its AMM on 14 different EVM chains, including sidechain and L2.
- Sushiswap's Total TVL across chains has surpassed $6B, ranking 2nd among all DEXs. On average monthly, Sushiswap AMM generates $16B trading volume.
Later in the article, we will explore the featured products that have been and will be launched in the Sushiswap ecosystem in a systematic way.
Learn more: Overview of the Sushiswap . ecosystem
Bentobox - the "box" that contains it all
In Japan, a BentoBox is a small box filled with the usual dishes that make up a Japanese lunch. The Sushi developers named the product BentoBox, referring to the fact that it is a single vault containing all the tokens of the Dapps built on it.
BentoBox's innovation lies in its easily extensible design. Its scalar design allows BentoBox to serve as the future infrastructure for the upcoming DeFi protocols on Sushiswap. See more about Sushi's plans for BentoBox here .
In terms of Dapp building, Bentobox allows to deploy contracts at a lower cost, thanks to its 1-vaults infrastructure, so developers can focus on what really matters. no need to care about gas fee optimization .
Here are two ways that BentoBox will improve capital efficiency for assets located in Bentobox:
- Gas Efficiency: User approves tokens once, allowing those tokens to be used in any other Dapp built on BentoBox without re-approving the transaction.
- Generate Passive Income: At the moment, tokens stored in BentoBox can be used to service flash loans to receive interest. This interest is then reallocated to all those who deposit tokens into BentoBox.
In the further future, the use cases of BentoBox will expand, BentoBox will algorithmically channel liquidity to earn passive income from a multitude of strategies, thereby generating profits from various DeFi protocols. The precondition is that the assets must be withdrawn immediately whenever necessary.
Some features in development:
- Extra Yield from Flash Loans.
- Extra Yield from Strategies.
- Optimize deposit, withdraw and help convert from ETH to wETH.
- Convert Low gas (fixed gas) tokens in BentoBox.
- Simplify token approval (no need for re-approval for each protocol).
- …
The figure below depicts the importance of Bentobox to the Sushiswap ecosystem;
The “dishes” under construction on Bentobox
Once you have finished making the lunch box, the next step will be to prepare the dishes to put in that lunch box. The first dish is Kashi!
Kashi Lending - Isolated Lending for all properties
Kashi is an isolated lending platform that allows users to lend & margin trade (Lending & Margin Trading).
Specifically, Kashi isolates the risks of lending and borrowing to each individual currency pair, meaning the loan is isolated and poses no risk to other assets. Thus, Kashi has the ability to create any new lending market with any token.
Learn more: Kashi - New equation for Lending & Margin Trading problem
Trident - First Native AMM on Bentobox
Trident is an AMM developed with a core focus on capital efficiency, it combines many outstanding features of other AMMs in a single platform.
In terms of features, Trident includes 4 main pools:
- Constant Product Pool - Constant Product Pool (similar to Uniswap V2) - for LTAs.
- Hybrid Pools (Curve) - For Stablecoin pool or low spread asset pairs like renBTC/wBTC. This type of Pool supports up to 32 different asset types.
- Concentrated Liquidity Pool (Uniswap v3) - A centralized liquidity pool that allows users to specify a token's price range to add liquidity with the aim of earning more transaction fees.
- Weighted Pools (Balancer) - Pool supports users to add liquidity at an arbitrary rate, this type of pool supports up to 8 different types of assets.
For user transactions, Sushiswap's routing engine (Tines) will go through multiple pools and routes to find the best price for the user.
Trident is confirmed to launch in November 2021. Initially, Trident will launch Alpha on Polygon for testing, if the process is stable, Trident will be deployed on L1 Ethereum and further Multichain .
MISO - Multichain Launchpad platform
MISO is an open source set of smart contracts created to support the process of launching a new project on SushiSwap. The purpose of MISO is to drive new capital and transactions for SushiSwap.
MISO is created from the following main components:
- Token - Allows you to choose the type of token that is suitable for the purposes of the projects. Token types include Fixed supply, Mintable.
- Market - Contracts for IDO tokens, there will be 3 options for selling tokens including: Crowdsale, Dutch & Batch auction.
- Liquidity - Move liquidity easily & trustlessly, part of the money raised from IDO will be used to create a market on SushiSwap.
- Vesting - Options vesting tokens over time.
Here are some key parameters of MISO after nearly 1 year of operation:
Shoyu - All-in-one NFT Platform
Shoyu creates a feature- packed NFT platform focused on Artist & Collector. Shoyu V0 is confirmed to be released in early November 2021. Some of Shoyu's standout features include:
- Gallery Display : 3D galleries catering to the Metaverse .
- Social Token : Support to issue social tokens , sell or auction them through MISO. Added the “Burn And Participate” function, which acts as an entry ticket to visit the Metaverse 3D galleries.
- NFT marketplace: Supports the purchase and sale of NFT tokens on Shoyu, it is optimized for users through on-chain & off-chain order book design.
- Variant bidding strategies : Supports 3 types of transactions: fixed price sale, english auction, dutch auction.
- Flexible fee structure : 2.5% per transaction is transferred to xSUSHI holder (protocol fee). 0.5 - 2.0% (TBD) of each transaction goes into operational funds to pay blockchain transaction fees, infrastructure fees (image/video hosting), support projects that will make a significant impact on the arts. Royalties ranging from 0 - 25% of every transaction (set by NFT minter) will be transferred to NFT minter.
- Flexible Payment Currencies : By combining with Sushiswap AMM, Shoyu supports users to trade NFT through thousands of different liquidity tokens on Sushiswap.
Challenges of the Sushiswap . Ecosystem
Negative effects of Liquidity Mining
Although the trading volume and TVL increased, the price of SUSHI still trended sideways for a long time. Personally, I see the main cause as the negative impact of Liquidity Mining programs, they cause great selling pressure on the token price.
It is known that the process of vesting farming rewards in August 2020 created pressure to sell 2M SUSHI/weekly on the secondary market, the good news is that that process is over. In addition, the reward for Liquidity Mining has also decreased significantly and tends to decrease over time.
Besides, the launch of Shoyu V0, Trident, MISO v2 in Q4/2021 could be the key points to boost SUSHI's Demand to help SUSHI price increase strongly in Q4.
MISO is good but not enough
Besides the advantages that MISO brings to the Sushiswap community and ecosystem, the platform also experienced some negative impacts in Q3/2021, although the Sushi team's swift action prevented the loss. users' money, but it shows that MISO still has a lot to improve on its way to becoming the gold standard in token launch of new projects ( IDO ).
The positive thing is that Sushi team has announced that they are actively working to prepare for the launch of MISO V2 in Q4/2021.
Bentobox and the projects built on it
In theory, the design of BentoBox gives it and the projects built on it with high capital utilization, but this means more risk.
In the designs of Bentobox, 1 Vault holds all assets for Dapps built on it, if Vaults are exploited , the loss will be more. In addition, the risk does not only come from bentobox but also from the DeFi projects that Bentobox uses in its strategies.
summary
November & December are two important months for the Sushiswap ecosystem, when they respectively launch important products and features such as Trident, Shoyu V0, MISO v2, these are pivotal steps to progress towards the goals. Sushiswap's more ambitious goals. If they're as successful as expected, this could be a hugely successful year for Sushiswap and its community.
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Disclaimer : All information on the article is for sharing market experience only and should not be considered as investment advice. Crypto investment is a form of risky investment and should only be entered with capital that can be lost.
