A raw, glistening ELI5 thread on $SUSHI

(Alternate title = Sushi chef murders multiple VCs)

To understand Sushi, boy, you must understand uniswap

Uniswap is a decentralized exchange (DEX). You can think of it like a vending machine.

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2/ Crypto hodlers fill the machine with crypto tokens, and crypto fish swim up to the machine to swap those tokens back and forth.

Me LOVE Uniswap. Me LOVE Hayden. Me have nothing but respect for him, his team and his platform. Let me tell you, boy, some of the reasons....

3/ ...why I love Uniswap so:

There's no KYC involved.

There's no third-party custody involved.

All there is is a simple, no-BS spot to swap tokens.

Now, when those crypto hodlers (we call them liquidity providers or LPs) fill up the vending machine with tokens...

4/ ....they get back shimmery, rainbow-colored "pool tokens"...

"Huh?"

Good, boy, ask questions.

I have all day to answer.

Let us suppose a hodler filled the vending machine with $ETH and $LINK.

5/ When he doe, he gets back a third token: ETH/LINK-Pool-Tokens.

Those 3rd pool tokens represent the liquidity Mr. Hodler provided Uniswap.

And those pool tokens let Mr. Hodler slurp up any fees that are earned on uniswap trades.

Best of all, those pool tokens can be moved.

6/ Enter $SUSHI chef. His uniform is so white. It is so clean.

Sushi chef is disarming. First, it's because he holds a knife as sharp as cat claws. But it's something else. Sushi chef has a look in his eyes. A gleam. Everyone sees it.

They see $SUSHI chef studying uniswap.

7/ He looks at it with a face of chiseled stone.

"I likey Uniswap just as much as the next guy," Sushi chef says quietly, "But I see Uniswap just took investment money from rich VCs."

8/ "I am not stupid. I know Uniswap will soon raise it's fees and give those rich VCs a cut."

https://cryptobriefing.com/uniswap-raises-11-million-top-vcs-token-imminent/

$SUSHI chef furrows brow.

Sushi chef stands very still for very long.

Then, sushi chef has an idea.

9/ "What if I entice-y the hodlers to bring their pool tokens to my sushi shop?"

"In exchange, I will give them my own $SUSHI tokens, and I will launch my own trading platform. If enough hodlers bring their pool tokens to my shop, we can actually have more liquidity...

10/ ...than uniswap. That means we will attract more fish. We will produce more fees. And instead of paying fees to VCs... we will pay our fees to our $SUSHI holders."

So, what's happening right now? What is that sound? It is the sound of liquidity on the move.

11/ The hodlers are slurping their liquidity tokens out of uniswap and hustling them over to the $SUSHI shop.

They are shoving their liquidity into a new vending machine. And in exchange they get $SUSHI tokens.

12/ They're supposedly doing it because they know that in two weeks, Sushi chef will convert his sushi shop into a full-blown trading platform. A brand new DEX.

And they will be the ones collecting fees.

The ultimate question is this: are the LPs just doing this temporarily?

13/ Are they collecting $SUSHI, selling it, and planning to run back to Uniswap as soon as the profits fade?

Who knows? But there's a chance they might stay.

https://twitter.com/NomiChef/status/1300034870094098434?s=20

So what's the takeaway?

There are many.

14/ Some are nervous Uniswap will die a painful death... stabbed in the back with a sushi knife.

Some read the tea leaves and shake their heads. They say "liquidity wars" are coming. They say new sushi shops will appear with even more enticing offers for our LPs.

15/ Some say VCs and premines are horses on their way to the glue factory.

I cannot read the tea leaves, so I do not know.

But I see the nervous tweets from some VCs. They're gulping and fingering their cufflinks.

16/ I hear the sushi chef sharpening his knife against the stone

Chhhiiinggg... chhhiiinggg.... chhhiiinggg...

I feel the power surging through the veins of us lowly fish. We are not VCs. We did not go to private school. We may have had to forgo health insurance for many years.

17/ But suddenly, we're getting a seat at the table. And this is what we say: remember us.

Chhhhiiingggg...

If you're a builder, and you dream of getting a fat check from a VC, go work in a different industry.

Chhhhiiingggg...

18/ If you're a VC who looks down on community projects, we are grinning back at you.

Chhhhiiingggg...

We may not have accounts at Goldman Sachs.

Chhhhiiingggg...

We may have had nights when we went to bed with hollow stomachs.

Chhhhiiingggg...

19/ We may not get bonuses or 10% raises or "flex time" or paternity leave.

Chhhhiiingggg...

But here, in this place, in this time...

Chhhhiiingggg...

The rules have shifted oh so slightly.

Chhhhiiingggg...

And we are legion.

Chhhhiiingggg...

And we are loyal.

20/ Chhhhiiingggg...

Devs, you give us your scraps

Chhhhiiingggg...

And we will take baseball bats to thine enemies

Chhhhiiingggg...

We will follow you to hell and back

Chhhhiiingggg...

And all of us will grow rich together

Chhhhiiingggg...

None shall go to bed hungry

21/ Chhhhiiingggg...

All shall dine on $SUSHI

Chhhhiiingggg...

And we shall klink our glasses with a loud kampai!

Chhhhiiingggg...

And sing songs late into the summer night