Listing Proposal: Add xSUSHI

Governance New Asset
1

Summary :
Proposal by Sushiswap team

SUSHI

xSUSHI is the governance token of Sushiswap, a community-led DEX with a current TVL of more than 1.1B.

xSushi is one of the two currently supported assets for Sushi governance (ETH/SUSHI SLP being the other one). We are currently not fully decentralized but the members of the Ops multisig and Treasury multisig are bound to respect all of the governance votes. We do plan to be a real DAO most likely leveraging Aragon v2 in 6 to 12 months depending on the progress made by community.

xSushi is receiving 0.05% of all the swaps happening on Sushiswap and should also benefits from all of the future revenues streams from upcoming platforms such as Bento-Miso-Gusoku-Deriswap and more.

The current yield on this asset alone is hovering around 10-40% APY with over 100m$ locked in the Sushibar making it an ideal productive asset as collateral.

Some very interesting data points can be found here :

Sushi is currently only supported by the platform Cream with a 60% collateral factor.

Given the short existence of SUSHI on the market and the volatility,

I think these parameters could be considered :

LTV Liquidation threshold Liquidation Bonus Reserve Factor
40% 65% 15% 20%

If this listing make sense I’d love for any Aavengers, Aave supporters and Sushi lovers to delegate some proposal power with their Aave or even better stkAAVE.

Here :
0x285b7eea81a5b66b62e7276a24c1e0f83f7409c1
ENS : 0xmaki.eth

Useful Links :
Official:
https://sushiswap.fi/
https://lite.sushiswap.fi/
Sushi token : 0x6b3595068778dd592e39a122f4f5a5cf09c90fe2
xSushi token : 0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272

Sushi Governance forum: forum.sushiswapclassic. org
Help and FAQ: docs.sushiswap. fi

Audits/Security Reviews :

Peckshield & Quantstamp

Benefits for Aave:

Aave would be the first platform to support xSushi a yield bearing asset with over of 100m$ currently sleeping.

Aavengers could use their platform of predilection to borrow their existing xSushi.

Support community-led projects.

Risk Mitigation:

Sushiswap has been audited 2 times and is a community-led project.

We currently have more than 23 000 Sushi guests.

We had one exploit leading to rewards not being rightly distributed to xSushi holders that was mitigated in 5h after being discovered with 15 000$ in lost profits reimbursed directly by treasury with no holders loosing any assets.

I will let the Risk team evaluate correctly but I believe we could be between a C+ to B-.

Thanks for your consideration and happy holidays to everyone.

33 Likes
2

I support adding xsushi as collateral for aave .

3 Likes
3

Gerçekten çok güzel olur destekliyorum

4

I support this addition, Sushiswap is an interesting dex. It would also be interesting to see besides xSushi the SUSHI token itself in the collateral options.

1 Like
5

我也支持 要支持 一路见证Sushiswap诞生 危机 与重生

2 Likes
6

This is money Lego at work, letthose who invest unlock their capital for the benefit of the whole ecosystem. Let’s work together

2 Likes
7

This would be awesome, I am highly supportive!

8

I assume this would be for v2 right?

2 Likes
9

Yes I didn’t specify but this is for Aave v2 !

6 Likes
10

We support this proposal as well. xSUSHI is an asset that’s well suited to be added to Aave.

3 Likes
11

It is great Proposal! :grinning:
Let’s unlock more than 128m$ in liquidity.

1 Like
12

@0xMaki
How many Aaves or stkAaves do you need for the listing proposal?
Where can I check the current proposal power delegation status?

13

This seems like a no brainer and I fully support. TVL for AAVE would increase overnight

2 Likes
14

yeah i’m all for it… sushi is going to big in 2021

3 Likes
15

I support adding xsushi as collateral for aave …

3 Likes
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xSUSHI

Screenshot 2021-01-05 at 19.56.10
Screenshot 2021-01-05 at 19.56.10784×210 17.3 KB

SushiSwap is a DEX forked of Uniswap that grew very fast, now at $1.6B of TVL, thanks to generous liquidity mining incentives. It is now part of the Yearn conglomerate with many new upcoming features.

xSUSHI is the staked SUSHI that receives .5% of the fees with 10 to 40% APY a great property for a collateral. The redeeming process from xSUSHI to SUSHI is permissionless allowing the analysis to focus on SUSHI.

SUSHI Smart contract Risk: B-

SUSHI was launched late August by a fork of the Uniswap Exchange. Shortly after launch, the key developer stole the development funds, eventually returning them. The network managed secure support from some industry leaders and has grown fast in these few month reaching two dozen users and over a billion transactions.

SUSHI Counterparty Risk: B

Sushi is a permissionless blockchain protocol where token holders vote on incentives and upgrades. Anyone can create new Sushi markets.

SUSHI Market Risk: C +

SUSHI has a good market capitalisation with a high volume. The price has suffered from extreme volatility since inception, suffering from large drops in value which is problematic for a collateral, requiring prudent parameters. This was driven by internal drama which also deeply affected community trust, now on the mend.

Risk Parameters ~ New (also proposed for SNX)

LTV 25%

Liquidation Threshold 45%

Liquidation Bonus 15%

Reserve Factor 35%

Variable Interest Rate Model ~ Collaterals

Screenshot 2020-12-15 at 19.44.31
Screenshot 2020-12-15 at 19.44.31751×484 21.5 KB

UOptimal 45%

R_0 0%

R_s1 7%

R_s2 300%

8 Likes
17

Great analysis @Alex_BertoG - it looks reasonable to me.

We’d be supportive of a listing proposal for xSUSHI.

  • Franklin @ Pantera Capital
5 Likes
18

Count me in - time to get this ball rolling guys :rocket:

19

Regarding the power of the deva behind sushi and the whole eco system with Andre I think adding xsushi would be great for both, Aave and Sushiswap. Making the whole Defi eco system stronger and even better. You have my favor.

20

This proposal was filed on the same day as the BAL proposal was filed. Not just has this proposal quite positive feedback, but it also just makes a lot more sense when comparing the development of Balancer versus Sushiswap within the past 6 months.

While BAL has been integrated as collateral by now, I can neither find a proposal for voting for xSushi in the Governance section nor can I find any statements (checked here and Discord) directly from the team so far.

Anybody? Any info? Did I miss something?

The way my Simpleton mind sees it: The more collateral I can provide => the more debt with safe health factor = more revenue and higher TVL for AAVE

Win-win, no?

Thanks for reading!

4 Likes