How sushinomics could be gamified

Summary

Gamified tokonomics by using a novel non-loss lotto yield game reward system.
Introduction of SUSHICATS own game token called SUSHICATSYFI (SCYFI) and its connection to $SUSHI

Abstract / Specification

SUSHICATS

SUSHICATS is a gamified DeFi savings lego, and no-loss lottery pool. As opposed to traditional (no catnip!) lotteries, users do not incur a cost for participating, other than Ethereum gas when entering the pool. SUSHICATS uses game theory to promote the saving of money in interest-bearing accounts. The pool automatically farms the highest APY products in the marketplace to earn maximum yield for its participants. SUSHICATS keeps all of its cats happy:smiley_cat: and offers everyone a chance to win a lot of nip!

Users come together to pool interest-bearing assets such as yCRV. Once every 24 hours at 12 pm GMT, a “laserpointer” function (DeFi powerball!) will be called automatically, which selects a single winning address from each pool and issues a reward for 50% of the accruing interest from the daily pool, less a 1% lotto platform fee. The other 50% of interest continues to be rewarded to all cats equitably to keep them happy. SUSHICATS will constantly look for other games and opportunities to feed cats!

Non-winning users simply keep their growing money in the pool and wait for their lucky moment.

What makes participating in SUSHICATS even more interesting is the use of a novel fee-earning token called SCYFI. SCYFI has a daily buy-and-burn, making it a delectable entree for any shape of cat. SCYFI has a limited supply curve under 100,000 tokens which halves after the first month, and once a year following launch. 80 percent of reward fees from the SUSHICATS platform will be used to buy back and burn:fire: SCYFI on a daily basis automatically through a smart contract. The other 20 percent of reward fees will buy back and burn the dao token which created SUSHICATS, $SUSHI token. In order to draw in users and increase interest in the protocol, all users will be able to farm SCYFI by supplying liquidity to the SUSHICATS.


Proposed tokenomics:

No-loss lotto rewards are proposed as being 50% of the daily accruing interest to balance between keeping all cats happy and enticing new users with a large daily award! If $20M liquidity is achieved, at current yearn yCRV APY (~$75%), lotto winners will take an estimated $20,000 each and every day. The other half of the interest will go to all LPs to keep all cats happy. SUSHICATS is initially envisioned as having a fee-earning platform token with a limited supply under 100,000 called SCYFI. SCYFI farming rewards halve after the first month, and once yearly afterwards. 80% of the 1% platform fee will go to buy-and-burn SCYFI every day. The other 20% of the platform fee will go to buy-and-burn $SUSHI . While SUSHI will be the DAO and entice new users to join forces with SUSHI , the majority of fees from present and future games will reward SCYFI holders

Motivation

We need to innovate and take more steps to get SushiSwap to the next level. I believe that trading should be more fun and by proposing this gamified tokenomics, people will enjoy the possibilities with our SushiSwap platform even more.

For

  • More use for the $SUSHI token
  • Make SushiSwap a fun versatile platform with interesting opportunities
  • The possibilities are endless with SUSHICATS, NFT’s next?

Against

  • Issuance of a new token is alway risky, only use a token if you think you need one
  • Dividend incentives vs. LP incentives. There is a reason why they exist.
  • Could be seen as gambling instead of yield farming.
9 Likes

The poll function couldnt be created.

Gamification is great, but the following issues should be addressed:

  1. Impermanent loss for participants.
  2. Instead of creating yet another token, can’t we just require a small size sushi stake to be escrowed/locked as an participatory bond?
  3. With current outlandish gas price, who is going to pay for the yield rebalance?
1 Like

I think this proposal is awesomesauce, or should I say awesomesushi?

What I like most about this proposal are the daily lottery elements associated with each interest-bearing pool. Lottery-based games having proven themselves to be a winner in the Ethereum ecosystem historically (some of the first smart contracts were lottery-based). Perhaps more importantly though, SUSHICATS would give users a reason to check in every day to see if they have won any lottery drawings. This would drive both user engagement and retention simultaneously for SUSHICATS and have great knock-on effects for the rest of the SUSHI ecosystem.

From a technical implementation standpoint, it would be paramount to ensure that the randomness component is completely fair and not exploitable. Perhaps you could share your thoughts on the entropy-provider @JustASushiChef and how this component of SUSHICATS would be architected?

In summary, great proposal! Looking forward to seeing what the rest of the SUSHI community thinks here and iterating on the idea together.

1 Like

Thank you for the kind words.

As entropy-provider we could use the newly launched Drand network, it is created by the League of Entropy (Including members are Ethereum Faundation, Cloudflare IC3 and more). Drand Network has a Distributed randomness beacon, this beacon is producing verifiable, unpredictable and unbiased random numbers as a service. https://drand.love/
I think we should fetch the competing ETH-adresses and create a solution to use this beacon to match a winning adress.

Appreciate your feedback!

Cool proposal, I like the combo lottery based reward + interest bearing LP - well done!

There are a few things that will need some consideration:

  1. When you randomly distribute the prize to one of the liquidity providers, there’s an incentive to provide the minimum amount of liquidity for the same chance of winning big. I’d suggest the easiest way to avoid this is to have a min required stake that could come close to the average stake we want for such pool per participant.
  2. When you create a randomnised gambling game, it will have to be audited well.
  3. How and in what token are the wins paid out? Winners likely like to dump this token unless it is $SUSHI
  4. It is important that all users can see who won visually and with a link to etherscan.

As I said like the idea, gl!

Robin

2 Likes
  1. Impermanent loss is something that is not prohibited. You could only reduce it if you pool like Balancer does in a 98/2 pool.
  2. The new token is created because we need a dedicated token for the SUSHICATS platform, see it as a satellite governence token for future games on the platform. I think it would be unlogical to use Sushi for that because the (“new”) community will be more informed and stick better when they actually use their own token, the SUSHICATS satelite community should be able to govern themselves. You could even think of using a voting system requiring both tokens, but you should give SCYFI more votingpower.
  3. Hopefully ETH 2.0 will solve that soon enough. The gas price is a problem for the whole ecosystem. We could also use a layer 2 solution to adress the gas problem in the meantime.

Thus a ‘no loss lottery’ should have a bold warning about the mechanics of impermanent loss.

This would be best.

If it will share nothing but a part of the name with sushiswap, what exactly sushi holders & LPs will gain from it?

The other 20% of the platform fee will go to buy-and-burn $SUSHI . While SUSHI will be the main DAO and entice new users to join forces with SUSHI , the majority of fees from present and future games will reward SCYFI holders.

I am a fan of a no-loss lotto system, however I’m not a fan of a whole new governance token and community. Why create a new governance channel when sushi governance is working just fine? I also don’t think having the lotto ‘tickets’ being scarce(limited supply) is beneficial or desirable to players. Prefferably I would be able to just throw my sushi into the lotto similar to the sushibar. Some questions that need to be considered before moving forward.

  1. Who is going to code and build this project
    and
  2. Why would a user choose sushicats lotto over existing and established fair-lotto dapps
1 Like

Hi,

A new SUSHI holder and crypto person here. Was wondering why choose a cat as the mascot rather than sticking to chefs or maybe sea creatures…

Also, any progress on this proposal so far?

1 Like