Sushi LPs and Sushi stakers are some of the core protocol supporters. They have their capital locked in. Though, they Sushi rewards, protocol can be made capital efficient.
Collateralize SLP tokens and xSushi to mint synthetic stable coins.
Collateralization ratio of 150% - Use Sushi TWAP oracle or External Oracle - Mint Stablecoin zUSD.
zUSD can be used freely by the LPs (LTV approx 40%).
Warning factor 70%. When the value of the LP tokens reaches 60% of the synthetic asset value, assets can be marked as potential for liquidation.
Liquidation factor 80%. Underlying LP tokens to be auctioned at discount, if no takers automatically liquidate the underlying assets.
At present total liquidity in Sushi is 400 Million. Considering top 4 pools and collateralization factor of 150%, zUSD mcap can be close to 100 Million.