Moonbeam <> SushiSwap Proposal

Overview

SushiSwap has created an amazing community, achieved significant market presence, and attracted a large amount of liquidity in a very short amount of time. We see SushiSwap as a testament to the power of blockchains to create and organize new kinds of grassroots-led communities. Moving forward the Sushi community needs to determine how to differentiate its offerings from UniSwap and other DEXes, and how to keep growing the liquidity and user base in an ever-competitive environment. We believe an important part of this strategy should be to expand to other blockchains outside of Ethereum. We already see the beginnings of this strategy in the Serum / Solana proposal. We believe that Polkadot should be a key part of a SushiSwap multi-chain deployment strategy…

Who Are we?

We have been working in the Polkadot ecosystem for well over a year now working on a project called Moonbeam (https://moonbeam.network/). Moonbeam is an Ethereum compatible smart contract platform built on Substrate, that will be deployed as a parachain on both the Kusama and Polkadot networks. Our goal is to enable Ethereum developers to easily deploy existing or new DApps and solidity based contracts with minimal change needed, realizing the benefit of lower gas fees while at the same time providing access to users and assets in the growing Polkadot ecosystem.

A Moonbeam-based Deployment

Moonbeam has a full Ethereum feature implementation including an integrated EVM, Web3 RPC, support for solidity based contracts as well as the Ethereum development toolchain (Truffle, Metamask, Remix) which all work out of the box. The team at Moonbeam is collaborating with Parity on these Ethereum compatibility features including work on the Frontier project. More technical information about Moonbeam can be found here (https://docs.moonbeam.network/) and information about the underlying Substrate framework that Moonbeam is built with can be found on the Substrate website. In addition to the Ethereum compatibility features on Moonbeam, there are multiple bridging efforts underway to bridge Ethereum mainnet to Polkadot which will allow for the movement of e.g. ERC20 tokens to/from Ethereum and Moonbeam.

As an example of how quickly a project can be ported to Moonbeam, the Uniswap V2 core contracts were deployed to the Moonbeam TestNet (Moonbase Alpha) with no changes whatsoever. Moreover, the deployment process was carried out with Truffle, both for the Factory and the Router set of contracts. The Uniswap Interface was successfully ported as well to connect to Moonbase Alpha (using a custom Chain ID).

SushiSwap can leverage Moonbeam’s Ethereum compatibility features to quickly port with minimal effort to Moonbeam, which will ultimately provide access to DOT, KSM, and the many other assets being created in the Polkadot ecosystem and by other teams building on the Moonbeam platform. We expect Moonbeam to be one of the places where assets and liquidity concentrate within the Polkadot ecosystem and we will be building integrations, using the cross-chain integration features on Polkadot, to bring assets from other Parachains in the Polkadot ecosystem to Moonbeam, which would make them accessible to SushiSwap.

Proposal and High-Level Timeline

  1. The community determines that extending to Polkadot via Moonbeam is a worthwhile endeavor.

  2. The community grants program agrees on a Sushi Grant to provide an individual or team incentive to port, test, and maintain SushiSwap deployed on Moonbeam.

  3. The Moonbeam team would provide technical and other support for these efforts.

  4. First goal would be to have a running deployment of SushiSwap on the Moonbeam Testnet (Moonbase Alpha) that is available now. We anticipate the effort being less around the deployment of SushiSwap and more around testing it to make sure it behaves as expected in all scenarios.

  5. Second goal would be to have a running deployment of SushiSwap on the Moonbeam KusamaNet. Kusama is a companion network to Polkadot and there will be a Moonbeam deployment on Kusama. The Moonbeam KusamaNet is expected to be live by the end of the year.

  6. Third goal is to have a running deployment of SushiSwap on Moonbeam MainNet connected to Polkadot. Our Polkadot deployment will follow our KusamaNet deployment after security audits and other reviews have been performed.

Milestone 1 - Deployment to Moonbeam TestNet

The first milestone is based on the deployment of the entire Sushi Swap system to the Moonbeam Testnet. As mentioned before, our Ethereum compatible solution should provide a straightforward porting of the Sushi Swap contract set.

Part of this milestone also includes testing Sushi Swap and all its features, such as:

  • Creating pools
  • Adding liquidity
  • Trade tokens
  • Trade tokens with no paired pools, using the Routing unit
  • Removing liquidity
  • Governance features

We believe that most of the effort will be spent on the testing side of things.

Milestone 2 - Deployment to Moonbeam Kusama

The second milestone is based on a live deployment of SushiSwap to Moonbeam on Kusama. In context, Kusama is a companion network to Polkadot that has the latest code. Code ships to Kusama first and after it has proven itself there, it ships to Polkadot. Kusama is a fully functional, live, and value bearing network.

The Kusama deployment of SushiSwap would be a fully functional live deployment that would get access to KSM and other assets that are on Kusama as the Polkadot-based interop features land there.

Milestone 3 - Deployment to Moonbeam Polkadot MainNet

The third milestone is based on the deployment to Moonbeam on Polkadot MainNet. Code running on the Moonbeam MainNet will generally have been vetted through one or more of the other networks listed before.

Rewards - All split equally between the 3 milestones below.

  • For Milestone 1: Grant of 4,000 Sushi from the SushiSwap treasury
  • For Milestone 2: Grant of 20,000 Sushi from the SushiSwap treasury. Grant of 25,000 Moonbeam KusamaNet tokens from the Moonbeam Foundation (0.25% of total genesis supply)
  • For Milestone 3: Grant of 100,000 Sushi from the SushiSwap treasury. Grant of 25,000 GLMR tokens from the Moonbeam Foundation (0.25% of total genesis supply)

For milestones (2) and (3) we are setting aside an allocation of tokens from our genesis supply of both our KusamaNet and Polkadot MainNet tokens. We leave it up to the Sushi community to determine the best use for these tokens. Some possibilities include using them to compensate the implementation team (in addition to the proposed sushi grants), to reduce adoption friction (pay for end-user fees, via e.g. meta transactions or giving them out to end-users), or to supply bootstrapping liquidity into the initial pools. There is a vesting schedule for the GLMR tokens, 1/24 of the tokens vesting in a linear fashion monthly for 24 months from the launch of our Polkadot based deployment. The KusamaNet tokens will not have an associated vesting schedule.

The Moonbeam team looks forward to working with the SushiSwap community on this project.

  • Yes - Deploy SushiSwap on Moonbeam
  • No

0 voters

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Big fan of what you guys are doing, didn’t expect you to tap into Sushi but I am all for it, bring it on.

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Would love to have a quick chat about this from a technical perspective… looked through docs a bit, but would be much faster if someone would be free for a quick chat… Discord or zoom, either way…

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Would the Ethereum and Polkadot SushiSwap networks share liquidity somehow?

Or is it just SushiSwap on Polkadot with additional liquidity there? Trying to understand how the two chains connect.

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Hi ericreid9-

In the simplest version there would be a separate instance of SushiSwap on Moonbeam/Polkadot. So you would have the existing:

SushiSwap on Eth with Sushi and SLP Tokens

and then on Moonbeam/Polkadot you would have:

PolkaSushiSwap with PolkaSushi and PolkaSushiSwap SLP Tokens

This is the easist to do and is what we had in mind in the proposal above, but as you point out these would be 2 separate sets of pools / liquidity, accruing value to the SushiSwap project and brand, but not necessarily directly to e.g. existing Sushi holders on Ethereum.

Just for some off the cuff thoughts, one way to accomplish alignment could be to initially distribute PolkaSushi to existing Sushi holders based on holdings at e.g. the launch of PolkaSushiSwap.

Also there are several Ethereum <> Polkadot bridging efforts underway that will open different scenarios. Including a bridge we plan to deploy directly on Moonbeam to connect back to Ethereum, which will allow for ERC20 transfers and remote state queries to / from Ethereum mainnet. So some other ideas that come to mind that should be thought through:

-Allowing assets such as Sushi and PolkaSushi to be cross listed on each others exchanges.
-Exploring what it would look like to have a single Sushi asset that can live on either Ethereum or Moonbeam/Polkadot and accrue value from trading fees collected across both exchange platforms.
-For this scenario existing Sushi could become “Wrapped Sushi” on Moonbeam across the bridge.
-This wrapped Sushi could be used to power the SushiBar on Moonbeam/Polkadot, thus providing additional staking opportunities for Sushi holders and driving incremental Sushi value.

Anyway these are just some immediate thoughts that come to mind. These are questions we would look to engage on more deeply with the people / team that wants to work on this project.

Ah, so we could airdrop PolkaSushi to all current holders? Address scheme is the same as ethereum? With the same private key, would I have the same address on Polkadot/Moonbeam? (I haven’t had much time to investigate yet)

Yes, the address scheme and keys on Moonbeam are the same as Ethereum (H160, EDCSA). We are still doing work on something we are calling Unified Accounts which will allow these Ethereum accounts to also power Substrate functions like onchain governance. We will be releasing that soon as well.

Hey Derek,

The proposal is up for voting but I think it would great to organize a zoom call for the Sushiswap community. That would be a good opportunity to present the project, clarify the milestones, address reservations and answer questions.

I’d be happy to coordinate that with you.

Simply DM me in Discord

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Hi Pedrowww-

I’m certainly up for that. I will dm you on discord.

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