Uniswap v Sushiswap v Actually Community Owned AMM

What wins? Here are some of the my thoughts on all this...

Rational LPs will always stick their liquidity where they will net the most money relative to the risks. This is a fact.

Uniswap gives full fees to LPs.

Sushiswap takes some of the fees off LPs and gives it to a Sushiswap treasure. But this loss is offset by...

The speculative value of the sushiswap token that they can print forever. BUT this relies on a community of speculators buying and selling the Sushi token.

Otherwise LPs have every reason to move back to Uniswap if the value of Sushi plummets or the farming APY is too low...

So Sushiswap is only able to keep its foot in the door as long as theres a big speculative market willing to buy the governance tokens

Now FTX is probably the best positions to keep this illusion running for as long as possible. But what about in bear markets?

I theorize that in a bear market the value of sushi will be too low for LPs to care and they may opt for their full fees again (or all MMs will get a big drop in LPs).

This feels like an endless game of rope pulling to keep LPs. But what about another community launched AMM?

I foresee at some future date that the community will repeat this dramatic scene in a similar way now when it becomes obvious that Sushiswap has been captured or bad governance decisions take place (something like excluding composability to artificially maintain a moat)

The other factor is that when Uniswap launches its governance token, the speculative frenzy around it at market will cause LPs to move back and farm and dump that token on noobs. Yes the speculators run this meta game that dictates what protocol will hold its LPs for an interim

But every AMM with forced governance token is open to losing market share by a public goods one that entitles all LPs to their full profits