Have a set of reward pools that rotate to bring in new liquidity and users to SushiSwap and stay relevant
SushiSwap is an AMM (Automated Market Maker). This is the core business. Value of the core business grows when we get more liquidity (providing less slippage for users) and more volume (providing more rewards to LPs and SUSHI holders). The main tool we have for bringing in liquidity is the SUSHI reward pools. We should therefore optimize how we deploy these pools to increase value.
Instead of locking ourselves into a fixed set of pool I propose that we keep a core set of fixed pools and add a rotating set of pools to continually stay relevant and bring in the highest value pools. Let’s call it the ‘Menu of the week’.
How we pick the pools to be included could be:
- The highest volume pools on Uniswap (to bring that volume to SushiSwap, maybe need to skip pairs that have high volume because they are incentivized as UniSwap LP on another platform)
- The highest volume pools on SushiSwap (to encourage new tokens to start on SushiSwap instead of elsewhere)
- Do a community vote
- Let 0xMaki decide
- Other ways
I think we can have long discussions about this, but meanwhile we’re losing value, so I propose we just pick 10 pools that make some sense and assign them a reward of 0.2x to kick things off. The reward will only last 7 days and by then we should have the next list.
- xSUSHI-ETH (That’s our token, we should have some liquidity)
- cDAI-DAI (earn COMP, compound interest, trading fees AND SUSHI)
- WBTC-ETH ($21M volume in UniSwap)
- CREAM-ETH (even better if we can be one of the CREAM reward pools, but let’s at least have some liquidity here, we’ll pick up volume through arb)
- FTT-ETH (with a little wink to @SBF)
- NXM-ETH (add some relevance to our pairs)
- yUSD-ETH (because cool, maybe pair with stablecoin instead)
- renBTC-WBTC (lots of idle capital sitting around here)
- CRO-ETH ($3B marketcap, sitting idle)
Yes, yes, yes, I know… you all have opinions on which pairs should be listed, let’s leave that for later. I tried to pick a bit of a wild list with several experiments… some might work, some might not… it’s only 7 days and only a 0.2x reward multiplier. I recommend here we choose action over endless debate and just start with this and figure out how to decide a weekly update as we go on.
- Bring in new liquidity
- Bring in new users into the ecosystem (different coins, different groups)
- Bring more volume
- Stay relevant, create buzz around new pools
- Other pools lose a small amount of yield. Longer term we can probably retire some of the main pools.
- Yes please! (even though I don’t like all your pool choices)