Vested SUSHI Rewards for Pickle Finance

Intro

Hi SushiSwap community! Larry the founder of Pickle Finance here - long time lurker on these forums but first time posting.

I understand that voting for SIMP#3 passed in favor of Option 2, where the 2/3rd vested SUSHI rewards may be withheld from certain smart contracts. Obviously it would be in Sushi’s best interest to prevent certain projects from immediately selling the SUSHI rewards on the market upon vesting and create immense sell pressure.

Proposal

I humbly request on behalf of Pickle Finance that our smart contracts (as part of our PickleJars) which farm SUSHI be rewarded the remaining 2/3rd SUSHI.

Pickle Finance is committing to staking all of the SUSHI rewards as xSUSHI (where it will forever remain in our treasury) if the SushiSwap community decides that we are eligible for the rewards.

SushiSwap and Pickle Finance are both ecosystem partners within the Yearn family. Pickle has made efforts to collaborate and explore synergies with SushiSwap at every possible opportunity. For example:

  • Profit fees were entirely removed from SUSHI farming Jars (e.g. yveCRV-ETH SLP and YFI-ETH SLP) such that Pickle doesn’t receive any fees for helping drive liquidity to these pairs.
  • I’ve started a forum discussion on migrating our PICKLE/ETH liquidity to SushiSwap - my intention is to conduct this liquidity migration alongside the launch of DILL.

Conclusion

I hope that my points above demonstrate Pickle’s commitment to SushiSwap. We’re excited for the opportunities to collaborate with SushiSwap and the greater Yearn ecosystem going forward. Thank you for taking the time to read this and I welcome any questions/comments.

9 Likes

Hey Sushi - just came to give another Pickle voice in support of this proposition.

One of Pickle’s core values is to be collaborative and not purely self-serving, because the team and community both recognise that this approach delivers to a bigger and longer term goal, of driving DEFI adoption and growth and being stronger together alongside valued partners.

After Pickle and Sushi both became part of the Yearn family, it only took a request from @0xNigiri for Pickle to kickstart a migration of all (viable) Uniswap pools to Sushi, including wBTC-ETH, DAI-ETH, USDC-ETH, and USDT-ETH Jars.

It wasn’t too long before a community member suggested removing the 20% Pickle performance fees on these strategies, to compensate for the 2/3 Sushi rewards being vested. At this point, we did not know for sure that the vested Sushi would be made available to us, but we acted on good faith that they might be (at least, hoped that would be the case!).

As Larry mentioned, if granted - the Sushi allocated would become xSushi and remain as a long term investment in the Pickle treasury, thus creating an even stronger bond between the projects.

3 Likes

I hope we can raise the price of sushi, so that more people will pay attention to sushi

1 Like

As a strong supporter of Sushi and Pickle, I support this proposal and have direct experience with their willingness to act honorable and in the best interest of their community and partners.

1 Like

Hello Pickle team, I am not part of the sushiswap core but I am a member of the community. With your proposal of removing the 2/3rds lock for your picklejar. Would your team deploy a smartcontract to ensure a trustless way of unlocking the 2/3rds and putting it into the xsushi staking pool?

If this is the case, sushi could implement this idea for all it’s users, perhaps with a time-lock on the staking of sushi for xsushi. This could still force users to hold onto the 2/3rds as well as giving first hand experience as to why one would want to further stake their sushi token. As of now, in my head, one would need to stake a significantly large amount of sushi to make it worth paying the gas fees to earn 3-6% APY.

Additionally, this universal update that doesn’t bend in favor of particular users would make me, “averagejoe” feel more comfortable with the idea in general as it keeps an even playing field for all users.

I’m not sure why protocols should be treated differently to average user.
Shouldn’t everyone be eligible to claim their vested sushi weekly?

I think we are at the position, where there is sufficient demand for the token, and the project should weather any drop that might come from additional liquidity.

1 Like

a very good idea,Pickle + sushi

3 Likes

raise the price of sushi and kill cake

1 Like

I am going to assume forever isn’t really forever. But more like a long term holding with vesting after some agreed time period.

UNLESS… Permanent holding but borrowing off of it…

hey @Larry_Cucumber thanks for reaching out with a proposal. My primary concern is that sending the vested sushi to pickle as permanent xsushi would anchor down the returns for everyone else and could cause similar price impact. Sorry if I’m incorrect but I always assumed even with only 1/3rd payout of the sushi yield, pickle jars were still more profitable using SLP vs uniswap LP. Is that wrong?

Why did uni go up so much these two days, but sushi didn’t go up much? I think this idea is very good

Thanks for expressing your concern. I think that the starting point on the vested rewards is that 2/3rd of the SUSHI rewards would be unlocked at the 6 month mark, with no distinction on whether the recipient was a personal wallet or a smart contract - see here.

Now of course, the Sushi team has a tough choice to make as they’re aware that certain smart contract recipients would just let the vested Sushi fly, which we all agree would be bad. I believe that the current inquiry is on which smart contracts should not be receiving their vested SUSHI, which is expressed in SIMP #3:

I think withholding Sushi to specific smart contracts is also important since their sole purpose is to sell.

Therefore, we try to show that we’re a force for good within the Sushi ecosystem and that we’re not going to do things detrimental to the project with the vested rewards.

To your point on profitability, the Uniswap LP equivalent Jars were actually more profitable than the SLP ones (considering only the immediate 1/3rd component). In either case, Pickle does not make any fees from our current Sushi Jars because we don’t take any profit fees on the 1/3rd the user receives - which is why we would rely on the topic of this conversation :smile:

3 Likes

Why is that so bad? The market will decide the price, just as it has now. If people dump that’s up to them. The price will bounce back if it’s supposed to.

2 Likes

Thanks Larry and Sushi community - let us know how do we proceed from here

1 Like