Learn about the story behind Sushiswap in one article
Overview Overview
This article starts with the official public information of various channels to explore the logic behind the SushiSwap incident, and hopes that readers will make rational investments through objective logical deduction. The popularity of DeFi has aroused the excitement of the entire currency circle, and it seems to have entered a "bull market". With the popularity of DeFi and the collapse of various currency prices in recent days, the SushiSwap project has become the most attractive and controversial project. Just when many people were preparing to celebrate the freedom of wealth, the SushiSwap incident broke out, and the price of the project's token SUSHI fell by 90%. The road to wealth and freedom is doomed to be full of risks, for everyone.
Report report
Report report
Here is a brief introduction to the background of SushiSwap.
To explain SushiSwap, we must first talk about UniSwap, because SushiSwap is a fork (COPY) of UniSwap. UniSwap is a decentralized exchange (DEX) that allows users to exchange ETH and ERC20 tokens. With its elegant market maker mathematical model xy=k, UniSwap has become an automatic market maker AMM that does not require KYC, and has become the leader of decentralized exchanges. The highest 24-hour transaction volume was 950 million US dollars on September 1. In this context, SushiSwap was born, forked UniSwap and provided SUSHI for SushiSwap users, allowing users not only to enjoy similar benefits to UniSwap, but also to enjoy the rights and interests of SUSHI tokens. So SushiSwap calls itself an upgraded version of UniSwap. When SushiSwap was hot, the lock-up amount was US$1.27 billion. At the same time, the lock-up amount of UniSwap was US$1.53 billion. *SushiSwap seized 83% of the liquidity. **
Why do you say "SushiSwap seized 83% of the liquidity", here we need to explain SushiSwap's show operation. The process of participating in SushiSwap is roughly as follows:
Create an asset pool in UniSwap and get LP tokens at the same time
Mortgage LP tokens on SushiSwap
Earn SushiSwap income
In other words, the assets of SushiSwap are all in UniSwap. The mortgage assets on SushiSwap almost reached the highest value, that is, on September 3, SushiSwap founder Chef Nomi initiated a proposal to migrate liquidity, that is, to transfer assets away from UniSwap.
Brief description of "SushiSwap Event".
On September 5, Chef Nomi, the founder of SushiSwap, quietly cashed out 17,971 ETH, with a total value of about 6.3 million US dollars. (According to theblockcrypto report, the cashout was 37,400 ETH, about 13 million US dollars). The news spread that the community exploded and caused panic among investors. Nearly 80%. When SushiSwap was preparing to migrate, the founder was preparing to cash out and leave, which made many people question whether Chef Nomi had "exited the scam." Later, Chef Nomi himself responded that he would continue to fulfill his promise and complete the multi-signing and contract migration work, but this result could not satisfy everyone. On September 6, Chef Nomi announced that he would hand over the private key of Sushiswap's control to SBF (SBF: Sam Bankman-Fried, CEO of encryption exchange FTX). The two protagonists on the stage, FTX founder SBF and SushiSwap founder Chef Nomi, only know that SBF is a real person, and SushiSwap founder Chef Nomi is just a fictitious name, and currently no one admits that he is Chef Nomi.
In short, it is a dog blood plot, and most investors are contributors to the dog blood.
Such a bloody plot has aroused the interest of our analysts. Let's try to explore the story behind it with various official information and data.
Lockup comparison
Timeline of events and questions that naturally come to mind
Time is currently the most objective and unchangeable thing. We first establish a time series as the starting point for analysis.
August 28: SushiSwap was launched, and the amount locked on that day was nearly 300 million US dollars
September 1st: SUSHI tokens are also on the top ++centralized exchanges++ These typical exchanges are: OKEx, Huobi, Binance, FTX
September 3: Chef Nomi, founder of SushiSwap, launched a proposal for liquidity migration
September 4th: FTX founder SBF launched a proposal: SushiSwap will integrate liquidity into Serum and will provide SRM as a reward
September 5th: Chef Nomi, the founder of SushiSwap, posted that migration is very important and sold SUSHI tokens to cash out 17,971 ETH, with a total value of about 6.3 million US dollars. (According to theblockcrypto report, cash out is 37,400 ETH, about 13 million US dollars)
September 6: SBF, the founder of FTX, scolded Chef Nomi, the founder of SushiSwap, on Twitter and obtained the private key of Chef Nomi, the founder of SushiSwap. SushiSwap changed hands
September 6: FTX founder SBF launches a new liquidity migration proposal
September 7: The Band protocol project denies that Band's CTO is Chef Nomi, the founder of SushiSwap
Ask a few very natural questions based on the timeline above:
Why is SUSHI listed on the first-tier centralized exchanges at the same time?
The key words here are "first-tier centralized exchanges" and "simultaneously".Think about what kind of benefits can make these exchanges list coins at the same time, and inquire about the past coin listing fees, processes, etc.
Why is FTX founder SBF so enthusiastic about this matter?FTX itself is a centralized exchange mainly engaged in derivatives trading, and has so many origins with a newly established decentralized exchange?
Why does SushiSwap do liquidity transfer?
Why did SBF, the founder of FTX, and Chef Nomi, the founder of SushiSwap, both propose to do liquidity transfer, and after Chef Nomi, the founder of SushiSwap, ran away, SBF, the founder of FTX, continued this liquidity transfer immediately?
Are FTX founder SBF and SushiSwap founder Chef Nomi familiar?
Do these centralized exchanges really not know who SushiSwap founder Chef Nomi is?
Do you feel comfortable doing business with more than 1 billion dollars with a virtual name?
Conduct data investigations against timelines and questions
Serum
Looking at the timeline, the names of some projects that may be related to this event have emerged. Then take a look at what those projects are like.
What is Serum?
Serum is the world's first cryptocurrency ecosystem that operates entirely on-chain and is capable of completely trustless cross-chain transactions. Serum was founded by the Project Serum team and has reached strategic cooperation with other top crypto asset traders and experts in the DeFi field. Serum is built on the Solana public chain, enabling Serum to conduct fast and efficient transactions.
It turns out that Serum is also playing DeFi. Then look at who did it and who is closely related to it.
Band protocal
On September 1st, the first-line exchanges where SUSHI was listed seemed to be here, and various famous DeFi projects also appeared.
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts.
What is Band protocol?
The above is the first level survey of the project that appears directly on the timeline. What is more interesting is that there are shadows of first-line centralized exchanges and traditionally well-known DeFi projects. Before starting the second-tier investigation, let’s take a look at the situation of UniSwap, the first supporting role in this incident.
UniSwap
secondary title
Uniswap is a protocol for exchanging ERC-20 tokens on Ethereum. It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for fast, efficient trading. Where it makes tradeoffs decentralization, censorship resistance, and security are prioritized. Uniswap is open-source software licensed under GPL.
What is UniSwap?
It is a decentralized exchange on Ethereum. Then look at who did it and who is closely related to it.
The founder is Hayden Adams, who took the investment of Ethereum with the help of Balance and Maker.
Second Tier Investigation
Then, according to Kyber's public data, look at Kyber's relationship map. There are Compound, AAVE, Mooniswap, 1INCH and so on. Notice how high the repetition rate is between these nodes and the relationship parties listed in the Serum.
Kyber
compound
Mooniswap
Conclusion
risk warning:
risk warning:
Be vigilant against illegal financial activities under the banner of blockchain and new technologies. The standard consensus resolutely resists various illegal activities such as illegal fundraising, network pyramid schemes, ICO and various variants, and dissemination of bad information using blockchain.
