🍣 SushiSwap Struggles to Overcome Lack of Management and Nixed Frog Nation Deal
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CONTROL SushiSwap doesn’t just need leadership, it also needs to sort out where all its keys are. It can be hard for organizations to priortize who controls what (like the many web-based tools it relies on) when times are good. But when times are bad it’s easy for the same organizations to lose control of essential services after staff suddenly leaves.
EXITS SushiSwap is going through this challenge right now in the wake of the exits of its top leaders and an apparently failed union with Frog Nation, the newly formed collective from Daniele Sestagalli and his allies.
POWER Case in point: one of the most important services for any decentralized autonomous organization (DAO) today is its Discord server. The SushiSwap community has lost admin access to its server, which means scammers can openly run social engineering campaigns against the less sophisticated SushiSwap users right out in the open. No one has the power to ban these people right now.
SIDECHAIN Sky Mavis, the company behind the play-to-earn game Axie Infinity, launched the RON governance token for its Ronin sidechain on Jan. 27.
REWARDS RON traded around $4 at launch and has since fallen 35% to $2.47 as liquidity providers on the Ronin chain’s Katana DEX continue to cash in their newly unlocked rewards.
INITIATIVES According to the litepaper, the RON token has a total supply of one billion, of which 30% are allocated to Sky Mavis, 30% to community initiatives including liquidity mining, 25% for RON staking rewards and the remaining 15% to an ecosystem fund.
TVL Users were able to farm RON tokens by providing liquidity to the AXS-WETH and SLP-WETH pairs on Katana since it launched last November. Total Value Locked (TVL) on the decentralized exchange surpassed $1B within days of its launch.
NEWS Kuiper, a permissionless protocol for creating indices has been released on Ethereum mainnet today in what the team behind it is calling a soft launch.
INDEX An index tracks a number of financial assets, and often has an associated financial product like a fund or token, that allows investors to gain exposure to that basket of assets. ETFs are such financial assets in traditional finance, and have grown into a $9 trillion industry. There have been a flurry of tokenized index projects launching in DeFi, but Concourse Open co-founder Scott Lewis argues there is more to be done.
BOOTSTRAPPED “There just is not a credibly neutral protocol for index tracking, and the ability to track an index is a major unlock for any financial system,” said Lewis, a member of the team that bootstrapped Kuiper, told The Defiant via Twitter DM. “We think that capability should exist as a public protocol.”
Juan Pellicer of IntoTheBlock explains the mechanics at work inside DeFi exchanges.
VALUE Web3 is all about value transactions, and exchanges are in the best position to provide that utility and capture value. But where does that value go?
REVENUES The most basic need that DeFi users demand is an exchange of tokens. Charging a small fee for this exchange is one of the most direct ways to generate cash flow for a DeFi protocol. These protocols are decentralized exchanges, and nowadays some of them are generating hundreds of millions of dollars in daily trading volume and generating daily revenues that exceed $1M in certain cases. These are the three exchanges that produce the most revenue:
FEES Revenues come from the fees that traders pay for the exchange of tokens. So the fees accrued are proportional to the value traded on each decentralized exchange. These fees tend to vary from 0.30% to 0.01% depending on each protocol and pool in particular.
PARTIES Beyond comparing these figures, it is interesting to explore how these revenues flow differently on each protocol, since these can be distributed very differently among all the parties involved with the protocol: the liquidity providers, the DAO/team supporting the protocol, or holders of the protocol’s token. Incentivizing these parties correctly is critical in a successful decentralized exchange. And that process can turn a wavering exchange into a steady revenue machine.
Twitter founder Jack Dorsey said that Meta’s failed cryptocurrency project Diem was “wasted effort and time,” and it should have focused its efforts on “making Bitcoin more accessible for everyone.”
🔗 ConsenSys Acquires MyCrypto to Strengthen MetaMask Partnership and Enhance Web3 Experiences: ConsenSys
The SEC has asked Bitwise to clarify how the investment firm will prevent share manipulation, fraud and other potential issues in its proposed spot bitcoin ETF, according to a notice to the company on Tuesday.
While we continue to closely monitor evolving COVID-measures in Amsterdam, things are progressing in the right direction, and we’re organizing quickly. With that, we wanted to share a lot more about what you’ll find in Amsterdam.
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🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Samuel Haig, DeFiDad, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
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