The high-stakes environment around decentralized financing and the hype around one of the latest proposals, sushi swap, resemble a Japanese delicacy called fugu, or blowfish, which is more lethal than cyanide.
Highly skilled chefs have served fuju in Japan’s finest restaurants for decades, balancing customer lives on the blades of Yanagiba knives. Any small mistake can fatally poison a dining room. As such, the cryptocurrency community now has the notorious DeFi fugue.
In a short time, a replica of the popular automated market maker Uniswap became more and more popular due to its profitable amount of profits and accounted for over 70% of Uniswap’s total value in early September. SushiSwap officially launched on August 28th. However, “Chef” Sushiswap, an anonymous character known on Twitter as Chef Nomi, appears to have introduced a lot of toxic fugos with SushiSwap token holders and users after exchanging all of his sushi tokens for Ether (ETH) on September 5th.
While the cryptocurrency community was bitterly mourned when rumors spread that Chef Nome had committed a scam in the exit, the chef attempted to atone for his guilt by handing over the project on September 6 to the respected industry pioneer: FTX CEO Sam Bankman-Freed …
Hand over power to society
Cointelegraph reached out to Bankman-Fried to find out how he was involved in the SushiSwap project and what the next steps for the platform were after the seemingly voluntary removal of the original creator. Bankman-Freed is also the CEO of Alameda Research, which has two trading accounts that are ranked in the top ten with lifetime earnings of more than $ 60 million, according to a Bloomberg report. FTX director told Cointelegraph that he called Chef Nome and General Manager of the OxMaki Project and tested the waters as part of a potential collaboration between the projects:
“I first contacted Nomi and Maki about potential collaboration opportunities after the project had been going on for a while; the conversations were fun, but nothing special happened, because in the end it was a community decision.”
Bankman-Freed was one of many players in the industry who showed a strong interest in the DeFi space, which increased its popularity and capitalization by 2020. Many projects have involved billions of dollars of capital, either in cryptocurrency or in fiat currency, locked in many DeFi protocols. … and many more can be attracted by their impressive income.
Uniswap’s 24-hour turnover surpassed $ 1 billion in early September. The published data places Uniswap in third place on the list of exchanges for normal trading volume, followed by Binance and OKEx’s central exchange rates. SushiSwap was launched and is currently running on the Uniswap exchange, and the huge profits spied on by the platform quickly prompted DeFi fans to invest in Ether in exchange for sushi tokens and keep huge value in SushiSwap liquidity pools on Uniswap.
Less than a week later, the total amount requested through SushiSwap was over 70% of the total value reserved in the Uniswap protocol. Bankman-Freed believes the platform is still of great value to DeFi:
I thought Sushiswap was so innovative and had a compelling presentation (before the Nomi event). It is difficult for me to predict the future here. Much depends on society. ”
After the famous exchange of icons by Chef Nomes, Bankman-Fried admitted that at first he did not want to take responsibility, but felt intuitively that this was “the right thing to do for the project”.
The wider cryptocurrency community was shocked by SushiSwap’s anonymous creator’s behavior, and many considered the Sushi / ETH token swap as an exit scam. Chef Nome retired from 17971 ETH after replacing 2,558,644 sushi tokens on September 5, which was originally revealed on Twitter by Spencer Noon, president of DTC Capital:
There was another exchange of tokens on Etherscan for another 20,039 ETH, bringing the total number of ETH tokens exchanged to 38,011 ETH, which at the time of writing was just under $ 13 million. It is assumed that these tokens came from the project developer group and were intended to fund the continued development and maintenance of the platform.
Since the platform appears to be moving into a multi-signature contract, Bankman-Fried wants Chef Nomi to return the money he paid from the project: “I absolutely want him to at least return most of that money to the developer. Billiards” I think he did a very bad job and it was The connection is very bad. “