Beefy x Sushi AMA — Recap
SushiSwap’s Omakase dropped by Beefy.finance’s Telegram group for an Ask Me Anything session with Beefy’s community. A huge thanks goes out to Omakase for taking the time to answer questions and giving a chance to our cowmoonity to get such thorough and in-depth answers as well as insight.
Through the duration of the AMA five participants from the live audience got a chance to win $20. Moreover, users from Twitter that had recommended questions for the AMA also got a change to win from a pot of $500 in $SUSHI rewards provided as rewards for the BeefSushi competition.
If you’d like to keep up to date with upcoming AMAs and competitions make sure to follow Beefy’s official account on Twitter and join Beefy.finance’s official communitu group on Telegram.
SushiSwap AMA 28.06.2021
Omakase:
Hi everyone, glad to be here and answer any questions you all might have about Sushi. Also will be answering to your questions posted on Twitter afterwards as well.
Moon Cow:
Welcome Omakase. Yup, I have a few questions, and then will share some that the cowmoonity asked on Twitter and Discord too. Can you introduce your self a bit, and what your role is at Sushi. And let us know what Omakase is… looks delicious.
Omakase:
Sure, happy to dive in. I was the first core developer at sushi. Involved in all things engineering and product.
Omakase essentially means chefs choice — or “up to you”. I chose this since sushi is up to the community and I view myself as essentially a steward in executing the community’s proposed visions.
Moon Cow:
Very nice. I hope the chef puts in some Tamagoyaki for me.
Moon Cow:
So, SushiSwap is one of the biggest DEXes across many chains. Please tell our cowmoonity a bit about SushiSwap’s development journey, and why you chose to deploy onto Polygon recently.
Omakase:
Sure thing. As most know we started off as an AMM and introduced yield farming through our masterchef contracts as a way to offset IL (impermanent loss) for liquidity providers. Since then we’ve expanded to numerous products and primitives. Arguably DeFi is comprised as three main yield primitives: native incentive tokens (similar to sushi), protocol usage (eg. fees to liquidity providers), and leverage demand (markets in contango, where derivatives trade higher than underlying assets).
Sushi now captures all yield primitives. Incentives through an improved masterchefv2, leverage demand through our lending platform Kashi, protocol usage from our AMM and increased capital efficiency from Bentobox. Our Miso launchpad has only started to consolidate that vision now. We want to be the best place to launch your project, discover, trade, lend, borrow, leverage, yield. All components of DeFi in one place.
Moon Cow:
Nice, and what about your Polygon expansion?
Omakase:
Polygon has been our first expansion in earnest -we’ve deployed optimized incentives programs there to make volume and liquidity very competitive even against our mainnet AMM. Quite frankly follow the users- it’s clear our retail users utilize Polygon heavily. In all, we are deployed to 20 networks currently and will continue to expand to more. We are live on Arbitrum so this will be interesting to see how L2s perform against commit chains such as Polygon.
Moon Cow:
Why do you think Polygon has been so successful with retail? We have experienced the same.
Omakase:
Essentially low fees and faster transaction times.
Moon Cow:
It seems that ΕΤΗ users trust Polygon too, that has helped.
Omakase:
Retail has a different set of preferences- arguably from a technical perspective Polygon is fundamentally not as secure as mainnet. For whales this might be a systemic concern, for retail this concern is outweighed from the numerous UX improvements. For example the average trade size on Sushi AMM mainnet for weth-wbtc is around $250k, on Polygon its much lower at $4k. Product market fit is key and Polygon has demonstrated that.
Moon Cow:
Yes. Agreed. It will be interesting to see Arbitrum in action.
Moon Cow:
So getting a bit more into the details of your LP rewards. Can you tell us about Onsen, how does it work?
Omakase:
Sure — Onsen on Polygon is using a more optimized methodology. Since Polygon is lower friction, we constantly track certain key metrics and adjust rewards appropriately to promote a growth in both TVL and volume.
As mentioned before, Sushi first started as a mechanism to offset IL for liquidity providers.
A first time user can provide liquidity to a trading pair, earn 0.25% fees from that pair, stake that pair in Onsen to earn SUSHI rewards. Dual rewards are adjusted to cover IL for high volume pairs and also encourage the growth of pairs of trading utilization for that liquidity amount is high.
Moon Cow:
And you recently added BIFI-USD.
How do you select what projects get into Onsen?
Omakase:
Selecting projects is a combination of identifying strategic partners and organic volume. For example, we view Beefy and other autocompounding vaults as extremely strategic projects that we want to incorporate into our ecosystems.
Moon Cow:
It will become permissionless?
Omakase:
Semi permissionless. We will provide an interface that allows projects to adjust their reward rates, track their TVL and APY- see the dynamics between the two and give recommendations on what the adjusted reward rate should be. A beta version will launch in a few weeks #sushi-leaks.
As mentioned we really do believe Sushi will be the best place for projects to launch, manage, and more importantly grow.
Questions from the Cowmoonity
Question from Matsdb:
What’s you next steps on Polygon? Staking SUSHI for xSUSHI, lending etc. You have Kashi, but not much on Polygon there yet.
Omakase:
Good question! We’ll be introducing an incentivized SUSHI-xSUSH Ipair on Polygon, this will effectively replicate the staking mechanism on mainnet through an underlying swap. xSUSHI entitles users to 0.05% of all swaps on all chains. Kashi lending we will start to expand with the introduction of TWAP oracles on Polygon.
This will effectively allow anyone to create a Kashi lend/borrow market for any token on Sushi AMM. If you want to take a short position against a token, create a market for it, done.
Moon Cow:
Where will the revenue come from to pass on these rewards?
Omakase:
All revenue to xSUSHI is from LP fees accumulated. These fees are converted to Sushi and sent to the sushibar on mainnet- when you unstake xSUSHI on mainnet you can realize all your SUSHI gains. But holding xSUSHI anywhere entitles you to these earnings.
We’ll also be releasing limit orders on Polygon sometime this week as well. This will be a pretty big feature as users can easily trigger buys or sells at whatever price points. Also since we utilize a virtualized balance on bentobox, you can open as many limit orders as you want the balance is not locked until the limit in fulfilled unlike centralized exchanges #sushi-leaks
Moon Cow:
Oh nice. So it is combined fees from all of sushi.com or just coming from the Polygon activity?
Omakase:
Combined fees from all of Sushi (all 20 networks and growing).
Moon Cow:
For beefy our revenue share is currently per chain. So the revenue can vary for BIFI maxi stakers. I’m sure our devs will look to vault this once it is live.
Question from Aussie Burger:
What are your initial thoughts about Arbitrum. How is it different than Polygon?
Omakase:
Arbitrum is an optimistic rollup. On a technical level this affords it the same security as the base layer- ethereum mainnet. To retail users the experiences will be similar to Polygon.
I think the key consideration comes down to any systemic considerations when deploying large amounts of capital. Moving and trading thousands is not as risky as trading hundreds of millions. So it will be interesting to see if retail will move to Arbitrum or are already used to the experience on Polygon. User preferences are usually sticky.
Moon Cow:
Yes, maybe if large numbers appear because the whales trust Arbitrum more, the Fish will follow. I know we are working behind the scenes with your team to make sure we are ready to vault your farms ASAP. It also depends on community building.
The projects on Polygon have been really open to things like AMAs and meeting our cowmoonity. Hopefully it is the same on Abritrum.
Moon Cow:
So this has been great. I know you are a busy dev, but it’s been great to dive a bit deeper on some of these topics with you. Apart from the incredible url sushi.com where should people be going to learn more about SushiSwap?
Omakase:
Not a problem! Happy to chat anytime. I could point you to docs.sushi.com, but these are kind of bland- honestly drop into our Discord (linked on sushi.com) and ask anything, core team is always involved in the Discord chat and I frequently answer questions directly. Our community is also extremely helpful on both Twitter and Discord. As we say “is there really any alpha if all the information is openly shared?”
Have a question? Comment? Concern? Swing by the Discord we’re literally there 24/7. Even if it’s your first time in DeFi come by! It’s how we all got started.
Moon Cow:
If you visited our Degen channel on Discord this would be music to their ears. Although they think they have all the Alpha to themselves.
Omakase:
:D
Moon Cow:
Perfect. We‘ll be visiting your Discord tomorrow so that Sushi can learn a bit more about Beefy. And I think Someone from your team will be with us when we host Polygon later this week.
It’s been a great kick off to BeefSUSHI week, thanks again Omakase.
Omakase:
Thanks for having me! 😬🍣
Moon Cow:
If anyone wants to read more about BeefSushi week, check out this medium article.
