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0/ @SushiSwap's evolution from yield farm to "blue chip" over the past few months has been incredible to watch
With multiple features going live this year, I wanted to lay out how Sushi is differentiating itself from @UniswapProtocol and what this means https://www.delphidigital.io/reports/uniswap-vs-sushiswap-a-tale-of-two-dexes/
With multiple features going live this year, I wanted to lay out how Sushi is differentiating itself from @UniswapProtocol and what this means https://www.delphidigital.io/reports/uniswap-vs-sushiswap-a-tale-of-two-dexes/
1/ First off, it's undeniable that Uniswap has more traction and individual users
But not many realize there are quite a few tokens that enjoy superior liquidity on Sushiswap
Consequently, Sushiswap is the only DEX (barring Curve) whose volumes come close to Uniswap
But not many realize there are quite a few tokens that enjoy superior liquidity on Sushiswap
Consequently, Sushiswap is the only DEX (barring Curve) whose volumes come close to Uniswap
2/ Margin trading, integration incentives, cross-chain swaps, co-building yEarn's Deriswap, and new AMM model are just a few things laid out on Sushiswap's roadmap for 2021
Each of these features improves Sushiswap and $SUSHI value accrual
Each of these features improves Sushiswap and $SUSHI value accrual
3/ There are cultural differences in the way both operate too
Uniswap v3 will likely change the game, but nobody knows what exactly it entails barring the team and perhaps some insiders
Sushiswap on the other hand has a high level of community involvement and transparency
Uniswap v3 will likely change the game, but nobody knows what exactly it entails barring the team and perhaps some insiders
Sushiswap on the other hand has a high level of community involvement and transparency
4/ As a result, Sushiswap has captured the "community-owned" narrative and continues to build on it
Uniswap is also community owned, but the lack of transparency wrt v3 (which is sort of understandable) differs from Sushiswap where the community knows exactly what's up
Uniswap is also community owned, but the lack of transparency wrt v3 (which is sort of understandable) differs from Sushiswap where the community knows exactly what's up
5/ Sushiswap has lots of things going for it in terms of integrations, thanks in part to its place in the yEarn ecosystem
Uniswap's first mover advantage gave it tons of integrations, but if it doesn't counter the integration incentives Sushiswap is setting up, that could change
Uniswap's first mover advantage gave it tons of integrations, but if it doesn't counter the integration incentives Sushiswap is setting up, that could change
6/ The community-centric narrative around Sushiswap is great, but it's important to realize Uniswap is the one that built out this AMM tech that does billions of $ in weekly volume
Uniswap v1 was built on a $100k grant and ingenuity
AMMs are arguably DeFi's biggest innovation
Uniswap v1 was built on a $100k grant and ingenuity
AMMs are arguably DeFi's biggest innovation
7/ For fundamentals:
Sushiswap liquidity has been steadily trending up since Nov 2020, making it the 2nd largest general purpose DEX
Sushiswap liquidity has been steadily trending up since Nov 2020, making it the 2nd largest general purpose DEX
8/ Sushiswap is also the only DEX where volume is comparable to Uniswap, even though there's a sizeable gap between them
Uniswap is still the top DEX by a margin, but if you don't see Sushiswap catching up, you should see an optometrist
Uniswap is still the top DEX by a margin, but if you don't see Sushiswap catching up, you should see an optometrist
9/ Value accrual is similar but not exactly the same
Both investment theses are rooted in cash flow generation via a 0.05% fee on trading volume
Uniswap's fees go to a community managed treasury
Sushiswap's fees go directly to $SUSHI stakers
Both investment theses are rooted in cash flow generation via a 0.05% fee on trading volume
Uniswap's fees go to a community managed treasury
Sushiswap's fees go directly to $SUSHI stakers
10/ Uniswap's 0.05% can only go live in March 2021 at the earliest while Sushiswap's has been on since Sep 2020
What if Uniswap turned that fee on at the same time as Sushiswap?
This is the result
What if Uniswap turned that fee on at the same time as Sushiswap?
This is the result
11/ $UNI's high market cap IMO is because the prospective cash flows are insane for a protocol that isn't even 3 years old
But $SUSHI value accrual is straightforward, since stakers directly receive fee income, and it's not too far away from $UNI's
Massive potential in both
But $SUSHI value accrual is straightforward, since stakers directly receive fee income, and it's not too far away from $UNI's
Massive potential in both
12/ Long story short: you have to be crazy to think Uniswap v3 isn't going to be mind bending OR to think Sushiswap isn't a real competitor with everything it has achieved and is rolling out this year
13/ The nuance of this argument is tough to capture in a tweet thread, so if this piqued your interest, I recommend you check out the full post: https://www.delphidigital.io/reports/uniswap-vs-sushiswap-a-tale-of-two-dexes/
