SushiSwap – a community-forked clone of Uniswap – is offloading central points of failures with a community-operated admin multisig.
With all the growth of @SushiSwap (and the FUD), I’m considering transitioning the admin control of MasterChef and devshare address to a MultiSig address behind timelock.
The contract is already deployed here: https://t.co/3JUjC2CPqd, but no signers added yet beside me.
— Chef Nomi #SushiSwap (@NomiChef) September 4, 2020
SushiSwap’s lead dev, Chef Nomi, suggested that with the recent growth of the project and the growing skepticism from the critics admin control of Master Chef and the dev share address should be transferred to a time-lock Multi-Sig Address.
SushiSwap took the DeFi space by storm, with more than $1.3B in TVL, propelling Uniswap to the #1 slot on the DeFi Pulse leaderboard. As a quick refresher, Uniswap LPs deposit their liquidity tokens to earn SUSHI governance tokens. Upon the forthcoming migration to a native DEX, 0.05% of trading fees with being converted to SUSHI and distributed to the token holders.
SushiSwap is now gearing up for “the Great Migration” in which all liquidity locked via Sushi will be migrated to the new SushiSwap DEX.
I recently deployed (Uni|Sushi)SwapV2Factory and Router02 smart contracts to the Ethereum mainnet. See https://t.co/x97ADWoinW for the list of all deployed smart contracts.
I also created liquidity pair $SUSHI-$USDT and added some liquidity + test trade https://t.co/aX4L36821L
— Chef Nomi #SushiSwap (@NomiChef) September 4, 2020
What’s to Know?
Master Chef is the smart contract that allows Liquidity Providers to deposit their Uniswap LP tokens. It acts as a yield farming contract by rewarding the depositors with SUSHI, with 10% of every distribution going to a Dev Fund for future sustainability. So far, the dev fund has been used to pay audits and security reviews from Quantstamp and Peckshield, along with a grant to Zippo for the SushiBoard. The dev fund is one of many aspects to be controlled by a community-operated multisig.
While the multisig is currently live, the only signer so far is Chef Nomi, the creator itself. Volunteers have stepped up to take on the responsibilities and execute the proposals. When asked by a user if the parameters of the multisig have been decided upon, Chef Nomi answered that they are still in the process of figuring it out, as it is such a delicate matter and that the process cannot be rushed.
Many of the nominees can be found responding to this Tweet.
I’m looking for the signers. The people that the community can trust to can execute the proposal. If you are willing to contribute to this work, let me know. If there is someone you want to nominate, you can too.
cc: @danielque @DegenSpartan @tomhschmidt @mrjasonchoi @lawmaster
— Chef Nomi #SushiSwap (@NomiChef) September 4, 2020
High Standards
The DeFi community has set the bar high for effective governance, best illustrated by the SushiSwap creators democratizing admin keys. Earlier this year, similar questions were raised when Andre Cronje was the only person in charge of governing the yearn protocol. He quickly set up a multisig wallet choosing nine individuals to govern the protocol while he aptly left himself out of the list. Quorum would be met only when 6/9 voters agreed on each transaction.
The only difference between what Andre did, and what Chef Nomi is doing here, is this that Andre left himself out of the process entirely. This led to him garnering a lot of prestige from the widespread DeFi community.
If one thing is for sure, just because you have a multisig does not mean that the signer will gel. With yEarn, all 9 originally signers were highly alligned to see the protocol through to fruition. At this current stage, it’s unclear whether or not people are volunteering to get the clout of being a signer, or if they expect to contribute in an active role once being granted to opportunity.
To stay up with SushiSwap, follow the project on Twitter.
Tarang discovered ETH in 2018 and has been actively involved in DeFi after finding PoolTogether in 2019. He’s most interested in the DEX sector as a frequent user and participant in Uniswap and Kyber Network alongside lending protocols like Aave. Tarang’s active presence in DeFi has given him a front-row seat to cutting edge trends and real-time developments. Stay up with Tarang by following him on Twitter.