Week in review
SushiSwap was created by an anonymous developer known as “Chef Nomi”. The goal of SushiSwap was to be the “next step forward” in the Uniswap protocol design. SushiSwap does this by added community-oriented features and more benefits for participants. The most notable being that the holders of their native SUSHI token are entitled to earn a portion of the fees paid to the protocol even if the holder is no longer providing liquidity.
SushiSwap is also (at one point) hugely popular in China, where netizens likened it to a “Uniswap killer”.
They have only launched around 3 weeks ago and the project has gone through enough drama for a movie trilogy. Here’s a chronology of what’s happened:
- 26 Aug-SushiSwap available for public.
- 29 Aug- Quantstamp completes “security review” of SushiSwap
- 1 Sep- FTX and Binance both list SUSHI
- 3 Sep- Quantstamp and Peckshield complete audits on SushiSwap, no fatal issues were discovered.
- 5 Sep- Chef Nomi sells their devshares, 2.56M SUSHI for 17,970 ETH (worth around USD$6 mil) despite previously promising they would not do so. Hence many accused Chef Nomi of “exit scamming”.
- 6 Sep- Control of SushiSwap is transferred to Sam Bankman-Fried, CEO of FTX. He decides to merge SushiSwap with his Serum DEX and proposes that the multisig should be held by 9 other people.
The fallout caused by SushiSwap was huge, Ethereum prices were at a 2020 high of USD$480 on 2nd Sept 2020 and crashed to USD$320 on 6th Sept 2020 after Chef Nomi sold their shares. Exchanges such as Binance also received criticism for not doing proper due diligence before listing SushiSwap. Indeed, some Chinese investors also started a “occupy crypto street” by withdrawing their Ethereum deposits in protest.
Interested or curious about SushiSwap? Check out our SushiSwap explainer.
Ethereum Gas Wars Resume
Ethereum gas prices shoot up again after a relatively quiet weekend. We’re seeing peak gas prices pushing to 190 gwei – attributed to increasing trade activity and yield farming activity. Yield farming is rapidly becoming a method for projects to bootstrap themselves, distributing coins to those brave enough to stake funds in their contracts.
Impermanent Loss Guide
The rising popularity of yield farming has also led to an increase in the number of scams specifically targeting yield farmers. These “Rug Pulls” usually come in the form of sudden drops in the value of a cryptocurrency, leading to huge impermanent loss of funds. In our latest video, we explain the basics of impermanent loss and how to watch out for it:
Ledger hardware wallet sale!
9 Sept 2020 12:00am: Bella Protocol ($BEL) staking available. Users can stake BNB, BUSD or ARPA tokens in 3 separate pools to farm BEL tokens.
13th Sept 2020: Hedget will list on Serum DEX.
16 Sept 2020 6:00am: BEL tokens listed for trading.
Sept 2020: Linear ($LINA) public sale.
*All listed times are at UTC unless otherwise stated
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