.@SushiSwap is interesting, but risky!
To make it a safer experience, I'm proposing a small % of the development fund be used to reward @NexusMutual stakers.
Some context below.
snapshot.page/#/sushi/propos…
To make it a safer experience, I'm proposing a small % of the development fund be used to reward @NexusMutual stakers.
Some context below.
snapshot.page/#/sushi/propos…
1/ During what felt like a lifetime ago (but actually 2 weeks), @YamFinance launched to fanfare, but a bug quickly led to a 90% plummet in price. 
2/ Little did many people know, @NexusMutual was offering insurance for to cover for smart contract bug induced loss!
Even at a 90% ANNUAL premium, whoever bought protection would still be much better off than those who didn't.
Even at a 90% ANNUAL premium, whoever bought protection would still be much better off than those who didn't.
3/ However, the fees generated weren't high enough to incentivize stakers to provide insurance on a new, highly risky project.
We have a solution for this...
We have a solution for this...
4/ To incentivize insurance underwriters, we resort to the idea of "insurance mining".
Projects dedicate part of their inflation to incentivize holders to provide cover.
This creates skin in the game for projects to prioritize security as well.
Projects dedicate part of their inflation to incentivize holders to provide cover.
This creates skin in the game for projects to prioritize security as well.
5/ Projects that choose to do this are like salesmen who actually use their own products.
This will signal a serious dedication to user security, protect user funds, and ultimately help newer projects set themselves apart from the thinly veiled ponzi schemes.
This will signal a serious dedication to user security, protect user funds, and ultimately help newer projects set themselves apart from the thinly veiled ponzi schemes.
6/ is a new exciting project that's capture over $1B of value locked in under a week.
To increase safety in DeFi, we propose 5-10% of the development pool (10% of all inflation) on @SushiSwap be used to reward those who stake behind Sushi contracts
To increase safety in DeFi, we propose 5-10% of the development pool (10% of all inflation) on @SushiSwap be used to reward those who stake behind Sushi contracts
7/ Using the amount staked for Uniswap contracts as a proxy, this will imply those who stake behind @SushiSwap contracts get a 50-100% APY on their holdings.
docs.google.com/spreadsheets/u…
docs.google.com/spreadsheets/u…
8/ If passed and implemented successfully, this model can be used as a blueprint for other newer DeFi protocols.
The governance vote is live today and will last for the next 72 hours. Get your votes in!
snapshot.page/#/sushi/propos…
The governance vote is live today and will last for the next 72 hours. Get your votes in!
snapshot.page/#/sushi/propos…
cc @YanLiberman @anildelphi @santiagoroel @Darrenlautf @HughKarp @SpartanBlack_1 @RyanWatkins_ @RyanSAdams @Arthur_0x @AviFelman @jbrukh @cburniske
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