$SUSHI Investment Thesis
It's one of the most promising projects in the DeFi landscape and in this post I will share a condensed version of why $SUSHI is a great investment at the time of writing.
Introduction:
Currently, $SUSHI is a token that I’m most bullish on. What started off as “just a fork” to Uniswap and got a bad reputation for their vampire attack on Uniswap and for one of the founder dumping their tokens has now blossomed into an innovative and flourishing DeFi protocol. I have three simple reasons for my bullish outlook on $SUSHI, they have an active, hard-working, and innovative team. They have a strong and involved community. Lastly, they are building an all-in one DeFi protocol.
The team:
The DeFi chefs at Sushiswap do all the correct things. They’re extremely ambitious in achieving their goal of becoming a one stop shop for everything DeFi. They have consistently delivered on their promises on their roadmap. They are extremely responsive to the community when it comes to issues and advice, prominent team member such as Mudit Gupta, Sarang Parikh, and 0xMaki are frequently seen answering questions & criticisms on twitter and discord within minutes to ensure that the community is always satisfied. Additionally, the efficiency and precision with which they build is something to behold. Launched on August 2020 as a simple DEX, in just a year they have evolved to so much more offering products such as Kashi, BentoBox, Miso, xSUSHI, Onsen, and are set to launch Shoyu. Given how young the DeFi space is, one of the key factors when investing in such immature markets is to have a strong, honest, and driven team. The Sushiswap team is all that and much more. In addition to the team they have backing from well-renowned investors such as Defiance capital, Delphi, and Parafi which further increases my confidence in their future.
The community:
The community of projects is something that is heavily overlooked when it comes to investing in a project. We have seen with tokens such as $ADA and $DOGE which may not have a working product but a very involved and dedicated community which singlehandedly has given the tokens multi-billion-dollar market caps. Hence, if you have a dedicated community combined with a well-functioning product, the growth of the token will be nothing short of exponential. The strength of the community is resembled through their 45k+ active members on discord and 123k followers on twitter. Furthermore, they consistently receive thousands of votes on all of their decentralized governance proposals and they also reward members for being holders and active in the community through xSUSHI where the holders who stake their $SUSHI get xSUSHI in return and a percentage of the fees collected by the platform.
All in one platform:
As I mentioned earlier, in just a year sushiswap went from a DEX & AMM that was a fork of Uniswap to so much more. Kashi is their very own lending & borrowing platform where users can get access to leverage and yield without the risks of Impermanent loss, Onsen allows users and projects to access relatively safe but fruitful yield farms, Sushibar allows users to stake their $SUSHI for xSUSHI, Bentobox allows you to use a host of Dapps gas efficiently, MISO is a suite of open-source smart contracts that makes the process of launching a project on sushiswap very easy, and the launch of their NFT marketplace shoyu is imminent and coming at a perfect time as the NFT space is currently booming. Lastly and most importantly, it is built on ethereum which is the layer 1 with the highest network effects and most demand. The reason I have given so much importance to all-in-one element is because when you look at the mainstream adoption perspective you can see that the average non-technical, non-crypto native user will struggle to move their funds all across the DeFi landscape. Sushiswap allows them to do everything they want in one place which makes it the more likely choice for an average user who wants the benefits of DeFi but cannot be bothered to learn all the intricacies of the space.
Sushiswap Metrics:
Metrics are always important when trying to gauge an understanding of usage. The current Total Value locked (TVL) in the ecosystem is around $4 billion which is a 10x increase from just a year ago ($400 million) with trading volume currently at $400 million. The usage is very strong and month by month it inches closer to taking more liquidity away from Uniswap. The current market cap is $2.4 billion and $SUSHI is trading at $12.78 which makes $SUSHI one of the most undervalued token in my opinion.
Possible Improvements:
Although the project, team, and community are brilliant, there is always room for improvement. One major improvement required is to make the UI & UX even more user-friendly than it currently is. SUSHI is in a great spot to capture a lot of normie demand when DeFi adoption increases because it’s almost an all-in-one protocol, however, if they make it easier to use similar to a Binance or FTX then they will certainly capture the biggest chunk of new demand.
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