SIP 143: Ordering SUSHI Source

Authorshoshin
Discussions-Tohttps://research.synthetix.io/t/sip-ssushi-sbnt/403
StatusFeasibility
Created2020-05-18

Simple Summary

This SIP suggest to add sSUSHI to synthetix trading.

Abstract

The addition of sSUSHI is a request coming from some dhedge pool managers, it would help us stay competitive and allocate extra funds to dhedge pools.

Motivation

Based on initial informal survey among dhedge pool managers, there is a large demand for synthetic sushi exposure right now. SUSHI produces strong tx fee revenue, distributes cash-flow to token holders, making it a very attractive investment with objectively strong valuation.

Specification

Overview

The Synth will be implemented in the same way as other crypto Synths.

Rationale

Liquidity Analysis

The tables below showcase statistics on the cost of pushing the price of SUSHI on binance (on the SUSHIUSDT pair) by the percentage mentioned in the header (denoted in bp):

PUMP 25 bp 50 bp 75 bp 100 bp 150 bp 200 bp 400 bp 600 bp 800 bp 1000 bp
mean $94,843 $142,283 $174,272 $208,541 $298,783 $354,616 $490,932 $666,195 $909,380 $1,165,911
median $53,113 $101,699 $130,931 $161,625 $241,659 $302,828 $432,423 $634,710 $876,232 $1,167,407
std $157,446 $153,860 $157,509 $164,904 $183,956 $187,374 $190,453 $220,173 $204,618 $246,736
DUMP 25 bp 50 bp 75 bp 100 bp 150 bp 200 bp 400 bp 600 bp 800 bp 1000 bp
mean $87,682 $181,439 $292,412 $377,534 $505,723 $592,309 $760,832 $1,063,896 $1,276,375 $1,502,712
median $62,261 $160,713 $256,827 $340,103 $503,269 $581,310 $832,143 $1,033,931 $1,202,532 $1,407,977
std $95,940 $102,193 $118,842 $124,870 $109,975 $128,473 $158,220 $205,092 $302,908 $335,078

Bad actors in the space would need a significant amount of capital in order to have a substantial impact on the price, therefore from a liquidity standpoint, SUSHI appears to maintain reasonable amounts of liquidity on CEX. In addition, the average bid/ask spread is 8 bp and the average daily trading volume of USDT 80 million.

Technical Specification

N/A

Test Cases

N/A

Configurable Values (Via SCCP)

N/A

Copyright and related rights waived via CC0.