Enthusiasm grows for “suSHIBAncor”, a proposed merger between Bancor and SushiSwap

Support is growing for a proposed merger Between the Bancor Network Y SushiSwap. The proposal calls for the two projects to be combined into a single entity, suSHIBAncor, which would benefit from increased liquidity, better leadership, and protection against the phenomenon of “permanent loss” that threatens the very foundation of decentralized finance.

The proposal, posted on the SushiSwap forums by an anonymous user who also goes by the name suSHIBAncor, sees SushiSwap as in real danger of exploding due to a combination of its chaotic leadership and lack of profitability from its liquidity providers. .

While leadership problems and lack of direction is a problem that can perhaps be solved, the problems faced by liquidity providers are less easy to solve. Like many automated market makers, SushiSwap suffers from the problem of non-permanent loss, in which users who stake their tokens in a pool actually lose money rather than simply keeping their assets in a wallet. Impermanent losses are believed to account for billions of dollars in losses each year, but due to the complexity of calculating, in addition to the opaque analyzes of many MMAs, most users are not even aware that they are losing money.

suSHIBAncor recognizes that the only solution for SushiSwap to address this problem is to merge with Bancor, which recently came out with version 3 – a revolutionary redesign Bancor protocol that adds protection against impermanent losses. The changes make the act of depositing tokens in a pool of MMAs much safer, easier and more lucrative, allowing them to “bet and forget” their tokens with full exposure to a single asset and without the risk of temporary loss. .

Meanwhile, Red Bancor will benefit from a massive injection of liquidity. SushiSwap currently has around $ 3 billion of asset liquidity that can be easily transferred to Bancor because the upcoming V3 supports unlimited pools.

“This means that not only can you migrate 3 billion dollars in assets without problems, but that all would be one-sided participations,” explains the author. “I’ll spell it out. If a token is single-sided staked and has full IL protection, LP tokens can only go up when denominated in the staked token. ”

The idea of ​​hisSHIBAncor has attracted a surprising amount of support. A quick poll by commenters on SushiSwap’s forum submission page shows that 59% are currently in favor. Also, a non-binding vote on the idea sent to Bancor snapshot shows that a massive 86% support the idea, at least in theory.

However, realizing that your SHIBAncor would take a lot of work. Bancor’s head of research and key contributor Mark Richardson said in the comment section that while the projects are community-led and therefore would fit the culture well, the proposal lacks clear details on what it would look like. the fusion. There are several issues that should be resolved, including the fact that both projects have unique tokens and code bases. He added that until the proponent has something more substantive to say on those issues, there is very little to discuss.

“I can see very clearly that such an event could be of immense value to everyone involved. There seems to be a synergy between the talent of the developers, the energy of the community and the shared vision that would be very powerful, ”said Richardson. “I don’t want my criticisms here to be misinterpreted as an outwardly negative reaction. I wouldn’t bother showing up if I thought the idea was empty. But it is [very] incomplete.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

Source: https://cryptodaily.co.uk/2021/12/enthusiasm-grows-for-sushibancor-a-proposed-merger-between-bancor-and-sushiswap

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