$SUSHI - DeFi token for sushiswap a fork of uniswap

johnarb

johnarb

In the process of liquidating half my $sushi bags bought 18 hours ago and hodling the other half whatever happens, all profits.

I'm also farming $sushi using LEND/ETH Uniswap liquidity pool tokens, and those I'll just hold as well, no cost to me since the LEND/ETH are part of my portfolio anyway (only a small percentage of my portfolio I'm risking on the platform, not like the guy on the twitter using 7000 ETH worth, lol. I'm staking them and getting free $sushi tokens.


https://twitter.com/x/status/1298674547860766726


https://twitter.com/x/status/1300610861359218689

https://twitter.com/x/status/1300578211227631616
 
An update on $SUSHI, since this Cryptocurrencies forum does not have too much activity, might as well share a view of the DeFi market situation.

Sushi got listed on FTX yesterday which opened up some complex trading strategies due to the availability of futures, some twitter posts mentioned locking in gains and stuff like that. I don't have that high of an IQ so I pretty much keep it simple and just manage risks by putting on low portfolio percentage allocation on any single trade and keeping an eye on price action and news. DeFi is in an extreme bull market phase that it's very difficult to lose money as long as you have patience and can ride the violent moves up or down.

I've made 3 market actions on sushi, thus far:

1. Initiated to open a long position when sushi was $3.60'sh
2. Sold half when sushi was $7.80'sh (currently $SUSHI is over $10)

3. Initiated a yield-farming DeFi using LEND/ETH Uniswap tokens and staking on the sushi platform and getting sushi rewards of 2120% APY (this fluctuates, was 1900% APY earier, it's based on supply of the LP tokens in relation to other LP token pairs/market - more info on sushiswap.org)
a. this is double the $ asset valuation of item 1 or 50-50 ratio (LEND or ETH is equivalent to item 1)
b. There is theoretically no $ at risk unless ETH or LEND have significant price declines but it's the same risk (actually much less) as holding both coins in a portfolio, which is why this is practically free money (sushi token rewards are essentially free) for providing AMM (automated market maker) functionalities to the DEX (Decentralized Exchange Uniswap), when someone wants to buy LEND or ETH, the liquidity pool takes the other side and same when someone wants to sell, and the smart contract keeps a balanced $ ratio 50-50. That is why for someone like me that does not mind holding either coin in whatever amount, does not matter much, no additional risk (actually less risk) than just holding them in the portfolio.

Item 3 will give me more $SUSHI tokens in 9 days than were sold in item 2, hence the hype on yield farming...
 
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johnarb said:
An update on $SUSHI, since this Cryptocurrencies forum does not have too much activity, might as well share a view of the DeFi market situation.

Sushi got listed on FTX yesterday which opened up some complex trading strategies due to the availability of futures, some twitter posts mentioned locking in gains and stuff like that. I don't have that high of an IQ so I pretty much keep it simple and just manage risks by putting on low portfolio percentage allocation on any single trade and keeping an eye on price action and news. DeFi is in an extreme bull market phase that it's very difficult to lose money as long as you have patience and can ride the violent moves up or down.

I've made 3 market actions on sushi, thus far:

1. Initiated to open a long position when sushi was $3.60'sh
2. Sold half when sushi was $7.80'sh (currently $SUSHI is over $10)

3. Initiated a yield-farming DeFi using LEND/ETH Uniswap tokens and staking on the sushi platform and getting sushi rewards of 2120% APY (this fluctuates, was 1900% APY earier, it's based on supply of the LP tokens in relation to other LP token pairs/market - more info on sushiswap.org)
a. this is double the $ asset valuation of item 1 or 50-50 ratio (LEND or ETH is equivalent to item 1)
b. There is theoretically no $ at risk unless ETH or LEND have significant price declines but it's the same risk (actually much less) as holding both coins in a portfolio, which is why this is practically free money (sushi token rewards are essentially free) for providing AMM (automated market maker) functionalities to the DEX (Decentralized Exchange Uniswap), when someone wants to buy LEND or ETH, the liquidity pool takes the other side and same when someone wants to sell, and the smart contract keeps a balanced $ ratio 50-50. That is why for someone like me that does not mind holding either coin in whatever amount, does not matter much, no additional risk (actually less risk) than just holding them in the portfolio.

Item 3 will give me more $SUSHI tokens in 9 days than were sold in item 2, hence the hype on yield farming...
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Yeah, I imagine there is not a lot of thought nor credibility given to DeFi in these parts.

So you restaked your Lend/eth and were ok with the fees in re-staking?


If folks really want to understand, look into yearn.finance which really lit the fire in this space. I'ts also spawned a plethora of copycats, yfii, yfiv, yfv, yffi, ad nauseum. The innovator is clearly the first mover, others more pump/dumps.

Sushiswap though is pretty fun, it has the combo of meme, DeFi mechanics, governance and yieldfarming all rolled up and served a la carte, like.... Sushi !!
 
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The shadow aspect of being an LP though is that one receives less of the rapidly appreciating token compared to it's base. So when folks think they are getting max ROI, it's not including this differential when someone unstakes.
 
Sprout said:
Yeah, I imagine there is not a lot of thought nor credibility given to DeFi in these parts.

So you restaked your Lend/eth and were ok with the fees in re-staking?


If folks really want to understand, look into yearn.finance which really lit the fire in this space. I'ts also spawned a plethora of copycats, yfii, yfiv, yfv, yffi, ad nauseum. The innovator is clearly the first mover, others more pump/dumps.

Sushiswap though is pretty fun, it has the combo of meme, DeFi mechanics, governance and yieldfarming all rolled up and served a la carte, like.... Sushi !!
More...

I hear you on fee$ (Ethereum gas fees are ridiculous right now especially on smart contract transactions such Uniswap and/or sushiswap staking platform transactions), but things have to be taken in context.

I think I paid $18 to stake on sushiswap, and will probably cost about the same to unstake and claim sushi tokens rewards, but let's put that into perspectives. Uniswap LP tokens are worth $30K ($15K LEND/$15K ETH), so $18 is not that much in comparison. I've earned 178.8 $sushi tokens in less than 17.5 hours which is worth ~$1,800. That's the reason I don't talk about fees because it's negligible for the size of my trades, ymmv
 
Sprout said:
The shadow aspect of being an LP though is that one receives less of the rapidly appreciating token compared to it's base. So when folks think they are getting max ROI, it's not including this differential when someone unstakes.
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Impermanent loss? I am staking coins that are part of my portfolio and having more of one vs the other is not an issue for me as I could always re-balance the portfolio later after I've unstaked and removed the coins from the Uniswap LP.

This is the reason I don't touch the other LP token pairs even if they give more yield/higher interest rate(even the sushi/eth pair that gives much more rewards, if sushi price crashes, you'll get more sushi coins than you wish to have and less of the eth coins when you unstake and remove liquidity)
 
johnarb said:
I hear you on fee$ (Ethereum gas fees are ridiculous right now especially on smart contract transactions such Uniswap and/or sushiswap staking platform transactions), but things have to be taken in context.

I think I paid $18 to stake on sushiswap, and will probably cost about the same to unstake and claim sushi tokens rewards, but let's put that into perspectives. Uniswap LP tokens are worth $30K ($15K LEND/$15K ETH), so $18 is not that much in comparison. I've earned 178.8 $sushi tokens in less than 17.5 hours which is worth ~$1,800. That's the reason I don't talk about fees because it's negligible for the size of my trades, ymmv
More...

If Sushi has a contract bug like yam, are those Lend/eth uni-v2 tokens locked up?
 
Sprout said:
If Sushi has a contract bug like yam, are those Lend/eth uni-v2 tokens locked up?
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Highly unlikely, but anything's possible. The smartcontract bug in YAM was on the rebase code, which gave too many coins to the treasury address, it also posed a risk to the liquidity pool on one pair, other pairs were fine.

The staking platform smart contract is open source on github and many others have looked at it, and it's a clone (with modifications) of another project, all things are explained on the sushiswap website.

Currently, a security professional auditor team has accepted the offer to audit all the sushiswap code and that's on-going, could provide another price boost after they are done and find no issues or only minor issues on the code.

Sushi team appears to be good devs even though they are anonymous. Other Ethereum (Solidity) developers have commented on the elegance and simplicity of the sushi smart contract code and clear and easy to understand and less risk of "bugs" as straightforward in the writing style, but I have no developer skills so what do I know, lol.

Additional info:

I'm no developer, but I've seen discussions on the logic/algos in certain smart contract codes. DeFi is named as such as it's a decentralized finance, the code runs the mechanics of what happens, so a staking platform such as sushiswap (which is a clone of another project per their website) is quite simple (for qualified devs, not me, lol), take Uniswap LP tokens as inputs, (deposit) lock them in a smart contract so no one can move them or transfer them and based on the amount and the type of LP token pair, provide the necessary yield (interest rate APY multiplier) and start allocating $SUSHI tokens to the ethereum address on per the original input. User can unstake at anytime and release the LP tokens and the rewards from the smart contract back to the Eth wallet address. My 2 satoshis view on this but maybe others will correct my mistakes.

sushiswap medium
 
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Cashed out all my $SUSHI profits and also the farmed $SUSHI, not bad, not bad at all, but I lost over $4K of profit$ by not selling over $10/sushi.

I did not need to harvest my $SUSHI and unstake the LEND/ETH LP tokens but I wanted to rebalance my crypto portfolio tonight and to see what impermanence loss I experienced whic is to the effect that I lost ~1.4 of Eth and gained ~873 of LEND by removing liquidity from the Uniswap pool.

Now for the ugly part of DeFi system. Ethereum fees are through the roof at the moment and much worse for DeFi transactions (a normal Eth transfer is about $4 which is quite high!, from what I can see on Metamask).

To harvest the farmed $sushis (about $1800 worth coz price went down) was $72 in gas fees. To cash out all the $SUSHI tokens (including the harvested coins) - trade to Eth, was $56 in gas fees. To unstake LP tokens from the sushiswap platform was $56, and to remove liquidity from Uniswap LP was about $45 (but only because I waited 5 minutes otherwise, first few prompts were over $70 and I kept rejecting).

I'll stake again tonight after I've totaled everything, it's free $SUSHI's, why not? :D The past couple of days have been great.
 
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