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Newsletter #10

After covering numerous DeFi protocols and trying them out, we are planning to write educational content about yield farming in the next newsletter. So don’t worry if everything is confusing, guides are coming! Meanwhile, we’re expecting a positive week for Bitcoin traders.

What is SashimiSwap? New DEX by aelf

SashimiSwap is a new automated market maker protocol planning to launch on Ethereum, following the same vampire attack strategy of SushiSwap. However, before you start shouting that this is just another scam fish fork, note that this project has aelf behind them. The project’s goal is to launch the most fairly rewarded decentralized exchange with the best liquidity.

What is SashimiSwap and SASHIMI?

SashimiSwap has removed the dev share distribution from the protocol. Whereas SushiSwap distributes 10% of its funding each time to the development fund, SashimiSwap focuses solely on rewarding liquidity providers. Though you can argue that SushiSwap needed the dev share design as it launched without any financial backing, this definitely caused a controversial saga.

Liquidity provider rewards… SashimiSwap will charge a 0.3% trading fee for executing token swaps, and 0.25% will reward liquidity providers. As a result, the remaining 0.05% goes to the SASHIMI DAO contract, meaning the community will decide its use.
  • Note the decentralized exchange is not currently live. Uniswap liquidity providers can stake their LP tokens and start earning SASHIMI tokens.
Plans for cross-chain DeFi… Recently, aelf launched AESwap, their developers are already working to link the two protocols for cross-chain liquidity and swaps. In addition, this type of cross-chain DeFi experience could potentially provide a better experience for traders and liquidity providers. Currently, we find high transaction costs and long confirmation times on Ethereum.

Meaning any initiatives, such as Serum DEX or Vite Network, to solve these problems could go down positively with the crypto community. Expect SASHIMI price surge!

Yfv Finance plans to migrate liquidity from Balancer

Yfv Finance is a DeFi yield aggregator, much like how Yearn Finance or DFI Money works. The platform allows users to deposit assets to start yield farming, earning rewards in YFV tokens, without needing to worry about high gas costs eating up profits. Inspired by the success of SushiSwap’s liquidity migration. YFV has planned a similar roadmap with Balancer being the target of their vampire attack.

The platform has grown extremely fast, with over $457M value locked up, aided by an on-chain referral program. Also, liquidity providers also earn vUSD and vETH tokens alongside their YFV rewards. These are experimental tokens with elastic supply models, which aim to automatically adjust their supply by rebasing to target 1 USD = 1 vUSD and 1 ETH = 1 vETH.

YFV Migration to VALUE

As Yfv Finance launched during the DeFi farming summer craze, a time full of scam forks, much of the community was very skeptical about the developer's intentions. As a result, the team decided to burn the owner key and minter of YFV. This earned the trust of the community, and has helped the protocol become a success so far. But, it meant upgrades were impossible. YFV holders have voted in the migration to Value Liquidity Token (VALUE) as a solution. Which opens up the doors for limitless future growth, with their own native liquidity pools.

True on-chain voting… a major plus compared to other new DeFi protocols with governance tokens, is YFV already has on-chain voting. Users stake their tokens for voting power and shape the future of the protocol. There are no manually updating parameters, Yfv Finance enjoys full on chain governance. As a result, when a voted proposal decides a different distribution of tokens per liquidity pool, it happens!
  • Migrating to Value Liquid and removing Balancer from the equation will be a crucial milestone for the project. So far the team has shown they have the technical know-how, but now we are entering new territory.
Eyes on the vaults… the team has stated their vault’s yield farming techniques are best-in-class currently. If this turns out to be true, with higher returns than Yearn or DFI, then YFV/VALUE could see the same parabolic price surge as YFI or YFII. Watch their updates closely!

Cream Finance Launches on Binance Smart Chain

Cream Finance is a DeFi protocol focused on providing peer to peer lending, along with an automated market maker for swapping tokens. The project launched as a fork of Compound Finance on Ethereum, focusing on supporting token assets that were not on its bigger counterpart. Cream is now live on Binance Smart Chain (BSC), taking advantage of the low transaction costs and links to higher liquidity through Binance.

What is Cream Finance?

C.R.E.A.M. Finance stands for Crypto Rules Everything Around Me, as a lending platform it allows users to deposit crypto assets as collateral to borrow funds and earn interest on their deposits. The platform pays out rewards in their governance token CREAM, though the main attraction over MakerDAO, Aave, or Compound is that Cream supports deposits for other governance tokens such as BAL, SUSHI, YFI, MTA, or yCRV.
In roughly two months, the protocol has grown rapidly, locking up over $300M of value. Cream Swap, the platform’s native AMM which resembles a fork of Balancer with slightly fewer fees, features incentives where liquidity providers can also earn CREAM rewards.

Launching on Binance Smart Chain… as an official DeFi partner of Binance Labs, Cream will enjoy growth from accessing the Binance ecosystem which features over 400,000 accounts and fiat gateways across 170 countries. Furthermore, with the interoperability of BSC, Cream can now support a wider range of coins such as XRP, BCH, BTC, and LTC.
  • Currently, defipulse ranks Cream Finance 10th overall and 4th in the lending category.
Looking to the future... CREAM token surged in price up to a new all-time high of $289 last week, as news around Cream Swap and the Binance Smart Chain launch broke. The token price has since corrected, trading at $189, so it might be time to buy the dip? Cross Chain DeFi might be the next golden egg.

Fresh Sushi Buyback? Chef Nomi returns all funds

Much to the surprise of everyone, SushiSwap’s founder and former head chef, has returned all the funds to the community. After being accused of an exit scam, the anonymous developer, only known as Chef Nomi has returned $14M back to the project’s development fund. As a result, the community is voting to immediately buyback SUSHI tokens from the market.

Chef Nomi apologized over twitter

In a Twitter thread posted on September 11th, Nomi admitted that he had made a massive mistake. While apologizing to the community as a whole, Nomi addressed several key industry leaders directly. He summarized that he had made bad greedy decisions under pressure. Additionally, he mentions that DeFi is amazing, and he did not mean to damage the movement.

In response to Nomi’s actions, FTX exchange CEO Sam Bankman-Friend, who now leads the SushiSwap project said:
"I'm extremely happy that Nomi returned the ETH; it was the right thing to do. We shouldn't forget what he did, but we also shouldn't forget that in the end he did the right thing."

Nomi also stated that after the successful liquidity migration, SushiSwap’s journey was only just beginning. However, if the community decides to forgive him remains to be seen. Many investors were burnt by Nomi's market dump causing SUSHI's price to tumble. And even a successful SUSHI buyback plan might not restore this damage.

Catch Up With The Tale:

Sushi Buyback?

The former Sushi leader mentioned that he/she plans to help the project in the shadows on the tech side without getting involved in the limelight. And that they would let the community decide how much they deserve, in any currency with any type of lockup schedule.

However, it seems Nomi may have to wait for now, as the community’s initial reaction is to start a SUSHI buyback program. This would replenish the dev fund with SUSHI instead of Eth, as it was originally. Expect price movement!

Also take note

  • bZx Network: bZx suffered security issues for the third time, after a much anticipated re-launch. As a result, BZRX price dumped by over 30%.
  • Binance Launchpool: Users can now stake BNB or BUSD to earn Bella Protocol BEL tokens and also WING tokens for the credit based DeFi platform Wing Finance.
  • Elrond Network: Announced a Catalyst sale for EGLD tokens on Bitfinex, which will start on September 23rd. Participants will receive a 25% bonus.
  • Yearn Finance: the new product StableCredit will start its open alpha this week. Meanwhile, YFI reached a new all-time-high of $43,678 over the weekend.

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