1/ $SUSHI is the latest psyop. Everyone’s farming it and dumping, well following the crowd is almost always the wrong move. It pays to be a contrarian. Sushi is a governance token and they kick-started the distribution by awarding $SUSHI to LPs for several Uniswap pools.

2/ During the next 13 days LPs will get $SUSHI as rewards for every block. After this initial period Sushiswap will be launched – a fork of Uniswap – that siphons a portion of each trade (0.05%) to $SUSHI holders in the form of additional $SUSHI. There will be continuous buy

3/ pressure as the transaction fees will be converted to $SUSHI and then distributed to liquidity providers. Under Uniswap’s model, there is no governance token and liquidity providers get the full 0.3% transaction fee as compensation.

4/ If Sushiswap can gain some traction and attract a portion of Uniswap’s volume and ultimately transaction fees it represents and interesting opportunity in the DEX space. Or is it a temporary craze where TVL is only high as farmers are getting the 10x $SUSHI rewards only

5/ available in the first 14 days? Time will tell. Make no mistake dexes are dominating CEXs this year, and the trend will continue to increase. Most CEXs are in pure panic mode as their business model is being significantly eroded.

6/ So this where it gets interesting. The largest $SUSHI farmer is contributing $31m in liquidity to farm. It’s practically undisputed now that this is @FTX_Official farming. Is FTX farming $SUSHI in anticipation of obtaining a controlling interest in Sushiswap and expanding

7/ their order-book only business to the DEX space? Perhaps. Are they just farming and using $31m in capital? Seems odd for an exchange to take such a large balance sheet risk on degen yield farming. Odd tweet storm about risk-reward yesterday didn’t seem to explicitly deny they

8/ are farming $SUSHI. They provided 300k $SUSHI liquidity in the SUSHI/ETH pool, and then an hour later pulled liquidity and rage sold. That’s a psyop if I ever saw one.

Tx 1: https://etherscan.io/tx/0x0634862f11e25f563e61146bfcb7a63133e73c4275fdf2756d17adbc6dac189c

Tx 2:
https://etherscan.io/tx/0xa66437e31665ed77f50b6cb07a59a0692381742f0d7f194681a165935eda9dc7

9/ @DegenSpartan is all over this one shilling fairly hard. And you know if he’s shilling hard it’s a deep psyop. Is it just a yield farming fad and will be over in 2 weeks, or is there something deeper in here? How defensible is Uniswap’s moat really? We shall see in two weeks…