The DEX field will continue to evolve. If there is a new and better encrypted native DEX model, it may have an impact on the market.
Author: Blue Fox Notes
A few days ago, AC mentioned the merger of Yearn (YFI) and Sushiswap, and Sushi once again attracted people’s attention. However, in fact, Sushiswap has been living and developing in the DEX field.
Sushiswap’s liquidity and trading volume
Before Uniswap launched its liquidity mining, Sushiswap had diverted a large amount of its liquidity, which forced Uniswap to launch its governance token UNI and start a liquidity mining program, which led to a sharp drop in Sushiswap’s liquidity. However, Uniswap’s liquidity plan did not completely defeat Sushiswap.
Although the liquidity and transaction volume of Sushiswap is not as good as Uniswap, it is also at the forefront of the DEX field. As of the writing of Blue Fox Notes, its liquidity has reached 915 million U.S. dollars, and its seven-day average transaction volume has reached 77 million U.S. dollars, although it is still short of Uniswap’s 1.69 billion U.S. dollars in liquidity and 297 million U.S. dollars in seven-day average transaction volume. There is a big gap, but this result of Sushiswap temporarily surpassed Curve, which was once firmly ranked second.
Sushiswap ranked second in transaction volume in the last 7 days, dunenalytics
Sushiswap ranked second in market share in the last 7 days, dunenalytics
Sushiswap ranked second in the number of transaction users in the last 7 days, dunenalytics
The market value of Sushi currently ranks 15th in DeFi, reaching $250 million, and its diluted market value ranks 21st, reaching $500 million. The market capitalization in the DeFi field is lower than UNI (US$820 million), 0X (US$320 million), higher than BAL (US$140 million), CRV (US$100 million), BNT (US$90 million), etc., but if it is diluted In terms of market value, UNI reached 3.8 billion U.S. dollars, CRV reached 2.5 billion U.S. dollars, BAL reached 1.4 billion U.S. dollars, and SUSHI was 500 million U.S. dollars. Judging from the current market value, from a long-term perspective, SUSHI’s additional issuance pressure is minimal.
In addition, SUSHI tokens can currently capture part of its transaction costs and can earn income by staking SUSHI, which is currently not available in most DEX tokens.
Possibility of Sushiswap
As mentioned above, AC announced the merger of Yearn (YFI) and Sushiswap. Judging from the main issues mentioned in this merger, although it is the merger of Yearn and Sushiswap, in fact, its synergy not only occurred between Yearn and Sushiswap, but also occurred in Between multiple projects merged with Year.
The most difficult thing that Sushiswap experienced in history was the sale of SUSHI tokens by its “chef”. This caused Sushiswap to lose the basis for survival at the beginning, and later, with the efforts of community participants such as SBF, finally survived the difficulty of survival, but The credit in the community is greatly reduced.
Later, under the efforts of “0xMaki” and others, Sushiswap still showed some new atmosphere, and even AC praised Sushi’s developer team without hesitation. Now in collaboration with the AC ecosystem, Sushiswap has more possibilities.
Synergy between Sushi and AC Series Agreement
For Sushiswap, basic liquidity and transaction volume are the most important. Cooperation with AC Ecology has the opportunity to bring more transaction volume and liquidity.
For example, Sushiswap will be used for Yearn exchanges in the future, which will increase its transaction volume; it can also bring greater liquidity. In the future, Kp3r will use all of its reserve funds on SushiSwap to provide liquidity for the KP3R/ETH token pool (currently About 14 million U.S. dollars).
In addition, the Cover agreement will also provide insurance services for its subsequent bentobox platform; Year will help create XSushi Vaults, where people can earn SUSHI-ETH-YFI-wBTC; the Cream agreement reserve will provide liquidity for Bento Box and so on.
These are just current ideas, and new things will evolve with the implementation of these collaborative work. This is where it is great.
Limit order mode
AC mentioned in the merger statement that “Kp3r will execute chain cap price orders, stop losses, and provide revenue for Sushiswap liquidity providers.” From this point of view, in the future, Sushiswap will also provide a limit order mode, which can enrich users’ more trading experience.
Exchange experience without gas
AC also mentioned: Kp3r will provide a gas-free exchange for Sushiswap transactions through Metawallet, which will greatly enhance the user’s transaction experience. After all, this is a major issue that users are currently concerned about.
Sushiswap’s LP token becomes collateral
Sushiswap plans to release the currency market, that is, the lending market. The current lending market generally uses ETH, DAI, USDT, USDC, WBTC, etc. as collateral. In the future, the currency market launched by Sushiswap can use its LP as collateral. This will increase the utilization of funds. From this perspective, it is possible to attract more people to provide liquidity to Sushiswap.
BentoBOX
BentoBOX attempts to build independent lending token pairs (each lending token pair has a different risk factor), which makes lending more flexible, thereby solving some of the limitations of the Compound and Aave markets moving to a larger scale.
Some interfaces have been released:
As the energy of lending token pairs is released, this may lead to a more prosperous lending market. In addition, the Cream Protocol Reserve will provide liquidity for BentoBOX to support its launch.
SUSHI’s value capture
At present, holders of SUSHI tokens can capture 1/6 of the transaction fee (taker fee), and the overall transaction fee is 0.3%, which means that the current SUSHI token can capture a fee equivalent to 0.05% of the overall transaction volume. At present, the annualized income captured by Sushi is as high as 79.5 million US dollars, second only to Uniswap, and second in the DeFi field.
Sushiswap’s annualized capture cost ranks second, tokenterminal
The DeFi field is far from a foregone conclusion
At present, it is too early to assert that the DEX pattern has been determined, because both liquidity and trading volume have been changing, and an absolutely fixed pattern has not yet been formed. Uniswap’s trading volume and liquidity are currently ranked first, but its market share of trading volume has dropped from about 70% before to about 55% today. The DEX field will continue to evolve. If there is a new and better encrypted native DEX model, it may have an impact on the market.
In fact, not only DEX, but also lending, derivatives and other fields are far from finalized, but the premise is that there must be real innovation, a veritable new species, and not copying CeFi or other DeFi operations.
