SushiSwap investors were handed a raw deal over the weekend after the pseudonymous founder of the $1.27 billion, 1.5-week-old decentralized finance (DeFi) protocol cashed out.
A fork of DeFi darling Uniswap, SushiSwap is the brainchild of a pseudonymous founder, Chef Nomi, who took the former project an extra yard by adding rewards for providing liquidity to the exchange through a liquidity provider token (LP), called sushi (SUSHI), that earns a portion of the AMM’s revenue.
In essence, AMM’s provide the infrastructure to match lightly traded tokens with liquidity. A variant of other decentralized exchange (DEX) experiments, Uniswap has grown to be the largest AMM with volumes nearing those of centralized exchanges such as Coinbase Pro.
The episode underscores the complexity, creativity and unpredictability of the white-hot DeFi space, where more than $8 billion worth of cryptocurrency is currently locked up in smart contracts, according to DefiPulse.
But, as sushi investors discovered Saturday, putting money into an unaudited contract controlled by an unknown founder was not a great idea after Chef Nomi unexpectedly sold his share of LP tokens Saturday.
The sushi token immediately fell 73% in price, dropping from $4.44 to $1.20 over the subsequent 18 hours, according to CoinGecko. The token is now trading hands at $3.16 as of publishing time.
Long story short, adding a native token to an AMM was a good idea, or at the very least one that sparked digital bread and circuses.
Chef Nomi launched the Uniswap rival Aug. 28.
Eleven days later on Sept. 6, $1.27 billion is “locked” in Sushi contracts. That’s equivalent to 77.4% of Uniswap’s tradable assets, according to Sushiboard.
SushiSwap’s transcendence to DeFi unicorn was made possible through an innovative leaching of its rival, Uniswap. Chef Nomi bootstrapped SushiSwap by leaning on Uniswap’s popularity within DeFi circles.
In a technique called “Zombie mining,” SushiSwap gave extra LP tokens for users providing liquidity to the ether (ETH)/sushi pool on Uniswap. LP rewards, moreover, were ten times higher than they would normally run up to a certain time. That created a mad rush to earn LP tokens through farming Sushi on Uniswap as shown by an exponential rise in Uniswap volume late last week.
Zombie mining has an end game. Chef Nomi planned on “migrating” the liquidity created on Uniswap through token dispersals to SushiSwap once enough volume was created. As CoinDesk reported Friday, that day moved to Sunday as the AMM continued to attract outsized demand.
‘Chef Nomi sucks’
But then everything changed when Chef Nomi attacked.
The founder, who ostensibly became a multi-millionaire by merely copying and pasting Uniswap’s code, shortly became the center of a Twitter doxxing campaign. His identity has yet to be confirmed.
Meanwhile, Chef Nomi, DeFi founders and sushi investors became engaged in verbal sparring.
Chef Nomi declared his intention to stick with the Sushi protocol and that his Sushi sale was well within his rights as a founder.
Others, such as FTX CEO and sushi investor Sam Bankman-Fried, were not enthused about that decision: “First of all, Chef Nomi sucks,” he tweeted Sept. 5.
Yet the clock kept ticking on the planned migration from Uniswap to SushiSwap. And, at this point, virtually no one trusted Chef Nomi to undertake the transfer in an honest fashion.
Through push and pull, Chef Nomi decided to give up his keys to the SushiSwap contract he and he alone held. To boot, the contract to the $1.25 billion protocol was given to none other than Bankman-Fried, who canceled the migration.
The entire exchange took place on Twitter Sunday with Chef Nomi lamenting his position. “Again I did not intend to do any harm. I’m sorry if my decision did not follow what you expected,” he tweeted.
As of now, Bankman-Fried controls the SushiSwap contract. In a Discord message, he said he plans to move the contract to a multi-signature contract until the project can be fully decentralized into the hands of SushiSwap LP token holders, similarly to other DeFi protocols.
MicroStrategy Keeps Buying The Dip – Spends Another $10 Million On Bitcoin
Everyone is acquiring bitcoin. From everyday people buying fractions of a bitcoin in the hopes of making a value later on to companies like Tesla padding their wallets with billions worth of the famous asset, bitcoin is all the rage these days.
Given that bitcoin currently hovers around $45,000 after seeing a new all-time price high of over $65,000 a few weeks ago, for some, now may be a desirable time to jump on the train.
One company that definitely got the memo was MicroStrategy as it was confirmed on May 18, 2021, that the company has bought another $10 million worth of bitcoin.
Bitcoin Whale MicroStrategy Keeps Buying
This latest purchase was confirmed by Michael Saylor, the founder, and CEO of MicroStrategy on Twitter. According to his tweet, MicroStrategy purchased an additional 229 bitcoins with each costing an average of $43,663. With this acquisition, the firm’s total bitcoin stash now comes to about 92,079 with an acquisition value of $2.251 billion. Acquired at an average price of $24,450 per bitcoin, this represents one of the biggest caches of bitcoin held by a single entity.
From the language used in the tweets, it is implied that the company intends to HODL long-term as do many private crypto holders who believe that bitcoin will be worth hundreds of thousands at some point in time. Regardless, it is clear that the corporate world is getting its fill of bitcoin and investing a significant amount of money in it.
It is safe to expect that other firms besides MicroStrategy will continue to pad their wallets with even more bitcoin and other cryptos, especially given that the market is not mooning at the moment.
At the same time, some analysts predict that the bitcoin price will reach $100,000 by the end of this year and some even predict $300,000 or 400,000 in a few years, and should this happen, it will be interesting to see at which price point firms like MicroStrategy will sell, if at all.
Marvel Icon Behind Batman, Green Lantern To Launch Exclusive Comic NFT Collection
The art world and the world of blockchain are currently seeing a huge intersection thanks to the rise of non-fungible tokens or NFTs as they are commonly called. Top artists from around the world have been selling their work as NFTs with millions of dollars being raised and NFT platforms seeing more attention from the artist themselves.
One of the latest of these is from Neal Adams, a legendary comic book artist behind iconic characters like the modern Batman and the Green lantern. It was announced on May 18, 2021, that the comic book artist will be partnering with Vorto Gaming to release an exclusive comic book and NFT collection.
Batman Immortalized as an NFT?
Some details about the new partnership have been announced such as Adams creating bespoke comic books around Hash Rush, which is the first title published by Vorto Gaming and will be released on its network. Part of this comic will involve new and existing Hash Rush characters and a new storyline from Adams.
Given that Adams has shaped storylines for a number of comics for DC Comics and Marvel, there is a lot of anticipation. He will receive help for this new project from Swedish-based ComicFirst Entertainment and their artist Mikael Bergkvist, who is also his mentee.
Adams himself has touched on the importance of gaming and why he is excited about this upcoming project.
“Gaming is without doubt the most innovative entertainment industry of the past decade and is shaping so many different aspects of our culture. We’re moving into a period in history where we are spending as much time exploring digital, imaginary worlds as we are living in this one. Comic books were always a transportation tool – taking us to another place, to experience another story, even just for a moment. Hash Rush is no different and I’m looking forward to sharing this story with the world.’ he said.
At this point, it seems that there is no limit to the type of content that can be created as an NFT. Artists from all sectors are beginning to explore their options with regards to both making money and providing valuable experiences for their fans. Hopefully, Adams’ participation in this project will lead to more prominent comic book artists embracing NFTs as well.
PARSIQ And Autonio Partnership Brings Smart Triggers To NIOX Trading Suite
PARSIQ has partnered with the Autonio Foundation to integrate its monitoring technology into Antonio’s NIOX trading suite.
As per the announcement, through this partnership, PARSIQ is planning to deploy its Smart Triggers technology into Autonio’s NIOX suites. The partnership will help Autonio monitor blockchain data for important events by integrating a few lines of code. Generally, this new integration will help save on the time and infrastructure required to create custom listeners.
Ali Raheman, Autonio Foundation CEO and Founder.
“PARSIQ enables us to secure our governance and our DAO along with granting our users access to info about asset movements, which is a higher up priority for us, while we begin incorporating notifications and triggers into our trading solutions and tracking. Use for AI is longer term. PARSIQ has provided us with a toolset to make improvements in 3 major areas, trading, governance, and analytics data for AI.”
Tom Tirman, CEO of PARSIQ.
“Automated trading tools are a natural use case for PARSIQ’s Smart Triggers, and we are glad to be seeing teams like Autonio speed up their development efforts by choosing our solution. There is no reason why crypto app developers should constantly be reinventing the wheel. By letting us take care of the intricacies, they save on time, money, and headaches.”
Autonio Foundation is a decentralized autonomous organization built around developing accessible, easy-to-use training tools and services. By democratizing access to intelligent trading tools, the platform allows crypto traders to conduct deeper trading analysis, pool funds for their original strategy, and deploy complex algorithms.
Autonio’s trading suites are based on Artificial intelligence technology. The suites require a stream of reliable blockchain data, which can create trading alert systems or complex trading strategies 0based on specific triggers.
By integrating PARSIQ’s Smart Triggers, Autonio will easily monitor blockchain data for relevant events. The partnership will also allow Autonio to access the PARSIQ toolset. The toolset allows traders to conduct strategies based on on-chain triggers such as transactions coming to large wallets. Additionally, Autonio will also use PARSIQ monitoring technology to gauge NIOX AI-based effectiveness, strategies, and efficacy.
Antonio will also be able to use PARSIQ tools for analytic purposes. The tool will allow the company to monitor withdraws and deposits transactions to the NIOX DAO, allowing them to understand their users. The analysis will be key in developing key metrics that will enable tracking growth.
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