Proposal: Nori - xSushi Governance on a Rollup

Summary

New ideas concerning xSushi and the magnitude of time locking are emerging. Additional utility of xSushi is being discussed and governance is playing a major role for the whole SushiSwap Ecosystem to be recognized as a reliable and stable community.

We propose to deliver a governance solution for xSushi that uses an optimistic rollup infrastructure called NutBerry.

Who we are

pinkiebell / @pinkiebell :

  • layer 2 scaling dev | optimistic rollup (creator of NutBerry)
  • founder of deora.earth / Habitat

victor / @vi15

  • founder deora.earth / Habitat
  • scaling governance for on- and offline communities.

max / @Macerer :

  • founder of deora.earth / Habitat
  • building community tools on Ethereum

Abstract

This proposal is about implementing the governance for xSushi and launching it on a rollup. This makes it affordable for everyone to use and express their voice.

We want to offer a solution to the following paragraph in the Sushi docs:

What is the process for proposals turning into code?

It is currently being developed and proposed.

https://help.sushidocs.com/faqs/governance

In comparison to Snapshot - our rollup framework allows to use on-chain execution without any trusted multisig and third-party involvement. Other current solutions such as mainnet voting (e.g. Uniswap) make it only feasible for big players to have a say due to high voting costs.

As gas fees are increasing, voting power starts to depend on the ETH balance of the holders instead of commitment to the protocol.

Specification

Deposit xSushi on Layer 2

  • Once Sushi is locked - xSushi is transferred directly on Habitat (the L2 governance framework) - in one transaction. Allowing a smooth and user-friendly transition to the rollup.
  • xSushi can always be exited on the Ethereum mainnet. This can be combined with an unlock and harvest of the staked Sushi OR DAI rewards (see SIMP #1).

Use Economy of Scale

  • One community on one rollup is not cost efficient. There needs to be more activity to fill rollup blocks and therefore utilizing the full potential of gas savings for mainnet inclusion. Habitat is achieving this through “Domains”.
  • Each protocol can set up their own independent governance domain with own parameters, rules and features. The catch, all transactions from all “Domains” are then collected in a single rollup block and finalized on mainnet.
  • Let small protocols benefit from big protocols. Governance domains can be combined with MISO. Equipping new projects with their own governance on the xSushi shared rollup.

Current Feature Sets

  • Delegation of Votes
  • Proportional Voting (Voting Power equals voting-token shares)
  • On-chain execution (mainnet)
  • Launch Wizard
  • Watchtower / Full Layer 2 node is able to work in a browser(!)

Motivation

Sushi and rollup is something that fits together naturally. Protocol Governance can be tough and demanding in many ways. The Nori proposal is there to hold everything in it’s place.

The voting interface is aimed at composability, i.e the voting interface could be directly integrated into discourse topics, securely via iFrames. That puts signaling and voting in one place.

Have a look at our Habitat layer 2 demo
We are live on Mainnet with Strudel.Finance and LeapDAO.

Our Ask

  • 35,000 SUSHI for baselayer and one additional feature (see poll)
    • 75% Reward in Sushi
    • 25% in xSushi (vested as long-term commitment)

For

The implementation of the improved xSushi Governance on a rollup will be provided by the Habitat team, letting the Sushi team focus on their existing tasks.

Against

Funds paid for the implementation of these proposals could be saved by Core developers developing it themselves.

Poll

We would love to get your feedback on this. Please signal the next features for Sushiswap governance via xSushi on a rollup.

Put xSushi on a rollup?
  • Yes + add discussion feature (discourse)
  • Yes + add domain feature (MISO)
  • Yes + conviction voting (continuous signaling)
  • No - please let the core team takeover

0 voters

4 Likes

hey sushi-community
first feedback was nice and we are grateful!

our dev @pinkiebell has adressed some feedback from the discord channels.
major concern was users paying for fees, we have a easy solution:

Here is a example without having to deposit/withdraw everytime:

  1. Create a wrapped version of the sushi token to be used as a governance token.

  2. let users claim their proportional sushi <> wrapped sushi each time and deposit into rollup. This can be all done in 1 mainnet tx.

  3. Users vote on the rollup with their token shares.

  4. Rollup operators bears the cost and can be paid by each user or the sushi protocol bearers. This payment channel is external and the rollup doesn’t need to be concerned with it.

  5. Protocol changes can now defined in proposal actions; i.e parameter changes or contract upgrades.

  6. Once Proposals are finalized and the rollup block is finalized on L1, then any such proposal actions can be finalized on mainnet in a trustless- and permissionless-way. Though, someone has to cover the gas expenses.

  7. Done :slight_smile: I mean, if the wrapped version is only used for governance anyway, then withdrawing these tokens is a no-brainer and therefore we don’t care.

1 Like