YCabal

A Strategy for Gasless Trading on SushiSwap

Manifold Finance

Published in

Manifold Finance

3 min readMay 24, 2021

Manifold Finance Overview

Manifold Finance provides solutions encompassing the middleware market for decentralized finance applications and protocols for both scaling and usability purposes. Part of our mission is helping scale the Ethereum ecosystem, which is where the idea of ‘middleware strategies’ comes into play. Our solutions can be thought of as an ‘APY strategy’ that you might find with something like Yearn Finance, except instead of providing capital (e.g. through depositing into a strategy with Yearn), we create applications that provide services that generate revenue (a prime example being YCabal).

What is YCabal?

YCabal is an aggregation strategy for scaling layer one using a mix of MEV and smart contract techniques to scale services like SushiSwap for end users.

Why the name, YCabal?

YCabal gets its name from the original ‘Backbone Cabal’, a scaling solution back in the mid 1980’s USENET days.

The cabal was created in an effort to facilitate reliable propagation of new Usenet posts. While in the 1970s and 1980s many news servers only operated during night time to save on the cost of long-distance communication, servers of the backbone cabal were available 24 hours a day. The administrators of these servers gained sufficient influence in the otherwise anarchic Usenet community to be able to push through controversial changes, for instance the Great Renaming of Usenet newsgroups during 1987.
Source, https://en.wikipedia.org/wiki/Backbone_cabal

YCabal uses services like FlashBots, KeeperDAO, ArcherDAO, etc, to provide transaction settlement, think of it as like 1inch but for MEV services.

YCabal is exclusively focused on the Yearn Ecosystem and providing scaling solutions within the Yearn Finance ecosystem, which is why our focus is on SushiSwap and the amazing Sushi Community.

How does YCabal work?

Whenever you will submit a trade on Sushi.com if your trade is eligible for getting its transaction cost refunded you will get a notification if it is eligible for a rebate. If your trade is not eligible it will be immediately submitted through a private RPC layer: you still get the benefit of a protected trade submission you just won’t get a transaction rebate. If your trade is eligible for transaction cost rebate, you will receive your rebate within 35 blocks. Version 2 will have a reputation system in which transaction cost is paid upfront for accounts with good account standing, otherwise the rebate system will apply.

The preliminary breakdown for Arbitrage payouts are:

50% Sushi Traders

25% Mining Pools

25% Manifold Token Holders