0/ @SushiSwap's evolution from yield farm to "blue chip" over the past few months has been incredible to watch

With multiple features going live this year, I wanted to lay out how Sushi is differentiating itself from @UniswapProtocol and what this means

delphidigital.io/reports/uniswa…
1/ First off, it's undeniable that Uniswap has more traction and individual users

But not many realize there are quite a few tokens that enjoy superior liquidity on Sushiswap

Consequently, Sushiswap is the only DEX (barring Curve) whose volumes come close to Uniswap
2/ Margin trading, integration incentives, cross-chain swaps, co-building yEarn's Deriswap, and new AMM model are just a few things laid out on Sushiswap's roadmap for 2021

Each of these features improves Sushiswap and $SUSHI value accrual
3/ There are cultural differences in the way both operate too

Uniswap v3 will likely change the game, but nobody knows what exactly it entails barring the team and perhaps some insiders

Sushiswap on the other hand has a high level of community involvement and transparency
4/ As a result, Sushiswap has captured the "community-owned" narrative and continues to build on it

Uniswap is also community owned, but the lack of transparency wrt v3 (which is sort of understandable) differs from Sushiswap where the community knows exactly what's up
5/ Sushiswap has lots of things going for it in terms of integrations, thanks in part to its place in the yEarn ecosystem

Uniswap's first mover advantage gave it tons of integrations, but if it doesn't counter the integration incentives Sushiswap is setting up, that could change
6/ The community-centric narrative around Sushiswap is great, but it's important to realize Uniswap is the one that built out this AMM tech that does billions of $ in weekly volume

Uniswap v1 was built on a $100k grant and ingenuity

AMMs are arguably DeFi's biggest innovation
7/ For fundamentals:

Sushiswap liquidity has been steadily trending up since Nov 2020, making it the 2nd largest general purpose DEX
8/ Sushiswap is also the only DEX where volume is comparable to Uniswap, even though there's a sizeable gap between them

Uniswap is still the top DEX by a margin, but if you don't see Sushiswap catching up, you should see an optometrist
9/ Value accrual is similar but not exactly the same

Both investment theses are rooted in cash flow generation via a 0.05% fee on trading volume

Uniswap's fees go to a community managed treasury

Sushiswap's fees go directly to $SUSHI stakers
10/ Uniswap's 0.05% can only go live in March 2021 at the earliest while Sushiswap's has been on since Sep 2020

What if Uniswap turned that fee on at the same time as Sushiswap?

This is the result 👇
11/ $UNI's high market cap IMO is because the prospective cash flows are insane for a protocol that isn't even 3 years old

But $SUSHI value accrual is straightforward, since stakers directly receive fee income, and it's not too far away from $UNI's

Massive potential in both
12/ Long story short: you have to be crazy to think Uniswap v3 isn't going to be mind bending OR to think Sushiswap isn't a real competitor with everything it has achieved and is rolling out this year
13/ The nuance of this argument is tough to capture in a tweet thread, so if this piqued your interest, I recommend you check out the full post:

delphidigital.io/reports/uniswa…

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Ashwath Balakrishnan

Ashwath Balakrishnan Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ashwath_22

9 Dec 20
0/

Corporations invest their assets to generate income on idle funds. Some like $MSTR shot to fame for investing the company's cash in $BTC.

As DeFi embraces DAOs, treasury management is evolving for decentralized organizations.

A thread 👇
delphidigital.io/reports/a-look…
1/

Most companies retain a majority of their profits, paying a piece to shareholders as dividends

Retained earnings are invested to protect the company's purchasing power and to make a little extra cash apart from the company's core operations
2/

Enter DAOs: with decentralized orgs governing crypto protocols, the community is responsible for running the treasury and ensuring there are sufficient assets to fund the protocol's needs

A few DeFi projects have already made progress here
Read 15 tweets
25 Nov 20
0/ Lots of opinions and a few misconceptions floating around regarding the recent agreement between @iearnfinance and @picklefinance

So I took the opportunity to dig deeper into this in today's Delphi Daily

delphidigital.io/reports/the-im…
1/ First up, yEarn is in the process of changing its fee structure, upping the performance fee to 20% and swapping the 0.5% withdrawal fee for an annual 2% management fee

You can read more about it here: gov.yearn.finance/t/proposal-inc…
2/ Pickle's jars, which were its yield farming vaults, will rebrand and become yVaults

Pickle is entitled to half of the performance fee from vaults they created the strategy for

In fact, all strategy creators will be incentivized with half of the performance fees in yEarn v2
Read 12 tweets
9 Nov 20
0/ For the last month, we've been looking into the emerging @Polkadot ecosystem to find out if it has substance or if it's just another “Ethereum Killer”

Today, we released a report outlining the basics of Polkadot and highlighting a few standout projects
delphidigital.io/reports/polkad…
1/ Polkadot adopts on-chain governance in a big way, integrating it into the core of the network and every proceeding layer. This is a world apart from $BTC and $ETH, both of which make decisions through rough off-chain consensus.

But is this better? That remains to be seen
2/ On-chain governance has become a major talking point off late. But it’s roots go as far back as 2016 with @decredproject implementing governance on L1 and @MakerDAO pioneering governance amongst DeFi apps
Read 14 tweets
20 Oct 20
0/ DeFi lacks tools that give investors exposure to the space's vast financial opportunities without having to stomach the insane volatility/risk of crypto markets

In today's Delphi Daily, I explore how this is changing with ideas like @barn_bridge

delphidigital.io/reports/barnbr…
1/ There's been a lot of talk about Barnbridge and $BOND the past few days – a result of the project launching DeFi's latest yield farm

But speculation aside, Barnbridge is solving a real problem. One that can result in institutions taking a serious look at DeFi
2/ Barnbridge creates permissionless CDOs. Simply put, you can put a bunch of different financial instruments into a single pool and cut it up into "tranches" with varying risk and reward

Senior tranches have low risk; low returns

Junior tranches have high risk; high return
Read 12 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!