Just wanted to start a post here on xSushi LM. xSushi is far more versatile than the Sushi token and presents a unique opportunity to really lean and gain liquidity and volume.
If you own Sushi, there isn’t much you can do with it (it’s a worthless farm token imho). If you stake Sushi into their Sushibar you will receive xSushi in return that accumulates in value through fee sharing. Brilliant. Many projects with farm tokens are doing this as this is a great opportunity for them to distribute to LP’s. It is the new basic tokenomics in Defi.
In the past we have whitelisted other projects to gain volume and liquidity who’s tokens were actually quite useless (i.e. UNI). The xSushi token should continue to see more volume in the months as Sushi grows and grows and I’d love to get some of that liquidity on Bancor.
Currently, there is $38.7M LP xSushi/ETH on Sushi and $852k on Bancor (and rising). If you are bullish on Sushi and value their innovation in the space, what do you do? I would stake all my Sushi for xSushi, but here’s the problem. Once I get xSushi there isn’t much to do with it. Your current options are LP with it on Sushiswap (suffer IL) or stake on AAVE as collateral at a mere (0% APY or 25% LTV), not good.
I think if we added LM on xSushi, it could potential raise TVL to over $10M, eating a good chunk of Sushi liquidity (that is on Sushi). This is how we win. We work with other projects and expose them to how awesome no IL is. I like the Sushi project (obviously not as much as Bancor) and this could be a great relationship booster, while also gaining some nice TVL.
Any thoughts? If others are interested, I can work on proposal.