Migrating to Sushiswap?

#1

Hey everyone, I know there has been some conversation about trying to get NDX into Sushiswap Onsen Program, so I wanted to continue that conversation.

I reached out to 0xMaki recently to inquire about applying to be listed in Onsen and his reply was as follows:
“Hey juul basically the best step would be to wait once Round 2 is announced in february
ideally the project would already be on sushiswap instead of creating this friction for LP to move and so on
if the team at NDX is considering bringing their farming program on sushi already it would be great etc.”

Basically in creating this topic I just want to gauge support for migrating to Sushiswap vs remaining on Uniswap (or the option of joint mining)

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#2

I would love to see NDX in Onsen… but even more importantly, would love to see NDX’s indices have liquidity on multiple platforms. This will become particularly important with the launch of L2s. Liquidity could become fragmented, and it will be important to have a presence wherever people are trading.

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#3

Just looking at the current NDX-ETH LP on Uniswap, we have ~500k in liquidity, that’s an increase of 100% from ~250k just three days earlier (Jan 29th), since that’s so recent it’s probably not a great idea to potentially split the Uniswap pool right now. I completely agree that a LP on Sushiswap is needed as they are growing tremendously and according to cryptofees.info they process about half as many tx’s as Uniswap at this time.

#4

Problems with split LP and sushi are two fold.

Firstly without the pools being incentivised there’s a cost to LP’ing on sushiswap vs uniswap in the form of the protocol fee, it isn’t much, but it is there.

Secondly, with how high gas currently is, aggregators and trading are very expensive, and at least this early on we don’t want to put people off by having slippage be any higher than it needs to be.

If we were able to get directly integrated with sushi, then a wholesale switch would make some sense, but as small as we still are, and as high as median gas currently is, not yet. I see the argument that having greater breadth of protocol coverage, and agree it makes sense, but not at the cost of higher fees and slippage.

An option could be simply have different pools in different places? certain index’s on incentivised on different AMM’s. Some incentive for NDX liquidity would be nice too, but not if it costs us too much for the benefit it provides. As is the NDX-ETH pool volume is so high that LP’s without massively out pooling ratios are doing fairly well for themselves, and if we keep growing at even a fraction of the rate we have over the last 2 weeks, it won’t be long before we’re in a much stronger position to make deals on a more egalitarian level that we might be able to at the moment.

In short, in my opinion we can afford to wait a bit, then go where we’re treated best.

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#5

This is very good input, thanks for commenting. I can definitely see with the rate of growth we have some opportunities opening up in the near future where we’ll have more leverage than a brand new project trying to find its bearings.

#6

I think it would be an excellent idea to get liquidity for NDX on Sushiswap. The Onsen program would be great marketing. I agree with @redphonecrypto - I’d like to see liquidity on multiple platforms.

#7

Based off the OP:

Basically in creating this topic I just want to gauge support for migrating to Sushiswap vs remaining on Uniswap (or the option of joint mining)

If this is really what it sounds like, which is moving off of uniswap then 1000% no.

Uniswap is in my opinion a much more robust, and battle-tested platform, with no known security incidents to date (that I’m aware of). Contrast this with SushiSwap which in its short existence has had a security incident that resulted in around 10mil being silently siphoned off the contracts.

Uniswap has a much larger community of users, and a bigger ecosystem thus you can more easily make trades between NDX -> ETH, and other currencies. In addition Uniswap has much more financial backing than SushiSwap which ultimately means less concern when it comes to development funds due to dev teams not having enough money.

Liquidity on Uniswap is already somewhat low compared to other tokens, and fracturing this between Uniswap and SushiSwap just harms liquidity.