Wangarian Profile picture
15 Nov, 13 tweets, 4 min read
1/ Some of you are wondering why $SUSHI has been pumping.

Sushiswap? Wasn't that the dead $UNI fork that got hacked by the founder 2 months ago?

Surprisingly, $SUSHI never left. Instead - it has silently been building in the background.

Let me break it down for you
2/ $SUSHI's dark horse narrative comprises of 3 main elements:

1. Market proven product yielding stable cashflows
2. Product releases with strong USP factor
3. Near term catalyst

Together, they construct a powerful narrative for Sushiswap's recovery - and why its far from over
3/ Background
After the initial Sushi hype faded (when 10x rewards expired in mid Sep), TVL and Daily traded volume on Sushiswap collapsed.

Nobody thought a fork with no USP could last.

Throw in a $15m ETH scandal by the founder it looked like the end.

4/ Product

Since then, Sushiswap's numbers have been surprising.

After bottoming out at $250m TVL and $10mm Daily Traded Volume, momentum has picked up once more.

And this is despite emissions being reduced a further 20%
5/ Product

The most astounding thing to me is that Sushiswap has already implemented Uniswap's target business model.

5bps of all traded volume goes to xSushi stakers generating ~14% APY.

This will soon be paid in DAI.

6/ Product

This is important because:

A) There is a clear link between platform value capture and token value accrual
B) This is non-subsidized (no ponzinomics here)
C) Actual dividends in stablecoins reduce volatility of returns (you don't need to form a view on Sushi's price)
7/ USP

On top of an exchange that has found product-market fit, new follow-on products are about to be released:

1. Bentobox (Margin trading any alt pairs)
2. Gusoku (IL protection)
3. MISO (Sushi Launchpad)

Of the 3, Bentobox has to be the one I'm looking out for.
8/ Bentobox

Leveraged trading altpairs (on Sushiswap) are something degens will appreciate.

Thankfully 90% of crypto are complete degens so this will fit right in. This will boost fees earnt on Sushiswap tremendously.

Currently in final stages of development + pending audit
9/ Catalyst

Obviously everyone is anticipating $UNI farming ending.

In my earlier thread I explored reasons why funds may leave Uniswap.

I think its very likely a large chunk moves to Sushiswap.

10/ Catalyst

Current APY yields for the 4 ETH pairs on Sushiswap:

wBTC: 22% (13% on Uni)
USDT: 31% (23% on Uni)
USDC: 36% (21% on Uni)
DAI: 29% (32% on Uni)

And 2/3 rewards are locked for 6 months to reduce Sushi dumping.

Where do you think funds will go?
11/ Team

@0xMaki and team have done a phenomenal job since assuming control of Sushi in Sep. They have been building in silence and the fruits of their labor are about to show.

@FUTURE_FUND_ captures this well here:
12/ Conclusion

Everything comes together in a perfect storm for $SUSHI.

They are proving that community driven forks can successfully compete vs incumbents through carving out their own separate niches in the space.

I can't wait to see how they continue to grow in the future.
13/ Disclaimer
Author is long $SUSHI. Tweets are not financial advice. Please DYOR.

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More from @Wangarian1

11 Nov
1/ On 17th Nov, $UNI farming will end.

Right now ~$2.3bn funds are deployed farming UNI, with $ETH being the reference token.

This means that there is currently ~$1.1bn ETH locked up, about to be released into the wild.

Where do you think that ETH will go?
2/ Whilst a large portion of current TVL will stay in the same pools (fees generated are juicy), I posit a reasonable amount of ETH will leave the Uniswap system in search of higher yields.

Nobody knows numbers at this point but 50% of TVL leaving may be within reason.
3/ If this holds true, ~$500mm ETH will be on the market. They can:

A): Stake elsewhere ($SUSHI/$ALPHA/ETH 2.0 etc)
B): Remain in holder wallets (unlikely)
C): Be sold for stables / altcoins

I believe a large chunk of it will be sold. Why?
Read 7 tweets
31 Oct

6 months ago, I didn't have the simplest idea of what a blockchain was.

This week, I've officially taken the plunge to work full time @DeFianceCapital.

Here are a few thoughts from a newcomer to the wild wild land of crypto.
2/ Like so many of you here, my innocent curiosity of this new Internet money quickly evolved into a fully encapsulating mind consuming obsession.

I fell down the classic crypto rabbithole and for the first time in my life, discovered a fire ignite within me.
3/ Frontier tech + Liquid Small Cap Pseudo Equities = Potential for reasonably sized house(s?)

Reflecting on my experiences so far, there are several takeaways on intrinsic motivation, game selection and DeFi that may be of interest to you.
Read 11 tweets

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