Sushi: Destiny and Drama in DeFi

Why it matters: The next trading pair to go live on Integral SIZE will be the SUSHI-WETH pair. We’re excited to continue expanding the pairs where traders can swap large amounts of coins with zero price impact at the 30-minute TWAP.

Unless you’re new to DeFi or have been living under an EtherRock, you’ve heard about Sushi. Of course, we are not talking about the Japanese delicacy, but the decentralized exchange Sushi, an OG of DeFi. In this article, we will go over a brief history of the protocol and some of the exciting things that are on the horizon for Sushi.

Sushi Forks Uniswap

Sushi swap is a decentralized exchange and started as a fork of the popular exchange Uniswap v2. While Sushi took most of their code for swaps from the Uniswap codebase, the Sushi team introduced an important addition that would catapult the protocol to fame.

The change that Sushi made was to use $SUSHI protocol tokens to incentive liquidity providers (LPs) to deposit into liquidity pools. Liquidity providers can stake their LP tokens in Sushi’s Master Chef contract and get $SUSHI rewards. By paying out tokens as a reward for liquidity, Sushi added a huge incentive for LPs to move their money from Uniswap to the new Sushi pools. The result was that almost 50% of Uniswap’s TVL at the time moved over to Sushi and the vampire attack was born.

Supercharged xSUSHI

The Sushi team didn’t stop innovating after the successful vampire attack. Another important innovation in DeFi exchanges was Sushi’s introduction of xSushi. In effect, users can stake their $SUSHI tokens with the protocol and receive $xSUSHI in return. $xSUSHI holders get a prorated cut of all fees from the Sushi exchange, paid out in Sushi. This means holding $xSUSHI gives you a larger amount of Sushi over time, aligning the interests of the protocol and token holders.

While Sushi started with simple token swaps, the product offerings have grown from those early beginnings. Sushi has experimented with several products and currently have a suite of DeFi offerings. The original MasterChef has rebranded as the Onsen menu. Miso is a new token launch platform. Kashi offers lending and borrowing to allow leveraged trading. Trident offers concentrated liquidity positions similar to Uniswap v3. All of these build a comprehensive trading platform for whales and degen shrimps alike.

Sushi’s Product Line

Some Sour Sushi

Despite the products that pushed the boundaries of innovation and decorum in DeFi, Sushi had its share of struggles. The roots as a fork and its quick growth made Sushi a victim of its success. There was the early drama with Chef Nomi, but it didn’t stop there. As Sushi grew, so did the DAO’s drama. Sushi’s long-time figurehead 0xMaki stepped down from the leadership. The CTO left publicly among staff and compensation issues. In the aftermath, the organization seemed to lack the direction and purpose that had driven its early days.

An exciting proposal from Wonderland and Frog Nation looked like it could add a spark back to Sushi. That is until it exploded into more drama with the revelation that 0xSifu, Wonderland’s treasurer and a key member of the team, was Michael Patryn and connected to a long history of questionable activity. The Wonderland proposal fell through and Sushi has since fallen out of the spotlight.

Sushi’s Bright Future

While the crypto-twitter pundits have moved on to new drama, the Sushi team put their heads down to do the important work of planning the protocol’s future. The first public detail of this plan has come to light in the recent proposal posted to the Sushi governance forums. The full roadmap for Sushi 2.0 is a long document that details the planned changes for Sushi’s suite of products and new products like the Shoyu NFT marketplace.

While the product changes will be welcome news for Sushi’s fans, even more exciting will be the renewed sense of direction from the team. While a number of proposals from outside the organization have attempted to bring reform to Sushi, the most recent Sushi 2.0 proposal seems to have the backing of the community and the team’s leadership. We are excited to see what comes next from what has always been one of DeFi’s most exciting protocols.

What to do with your $SUSHI?

Here’s a shortlist of what you can do with your Sushi today

  • Stake $SUSHI to get $xSUSHI and receive a prorated portion of Sushi’s trading fees.
  • Lend $SUSHI or $xSUSHI in various DeFi protocols including Sushi’s own Kashi lending product.
  • Pair Sushi with ETH to become a liquidity provider. Stake your LP tokens at Sushi for extra yield, or become an LP on Integral SIZE for even more $ITGR rewards.
  • Trade $SUSHI on Integral SIZE to do large trades with zero price impact and even get trading rewards!


Integral Insights


February 1st, 2024

Integral Insights: January ‘24

Our initial launch with the ETH-RPL pool was a success, quickly elevating us to the second most utilized liquidity pool for this pair’s trading.


January 17th, 2024

Is Liquidity Fragmentation Really That Bad?

When the token evolves into a store of value, it attracts outside traders, focusing on trading costs and slippage. This is when concentrated liquidity truly shines.


January 2nd, 2024

2023 Review

At Integral, our focus remains on developing a sustainable product for on-chain trading, serving both traders and liquidity providers.


December 12th, 2023

Integral Now Rewards Liquidity Providers with Trading Fees on Ethereum Mainnet

This enhancement enables liquidity providers (LPs) to directly receive a portion or all trading fees from Integral pools.


December 6th, 2023

Integral Insights: November ‘23

During November, Integral processed an average of approximately 6 million in volume with around 1.5 million in TVL. The system’s overall capital utilization sits at around 350%. It is the 10th most used DEX on Ethereum.


November 28th, 2023

Integral Now Rewards Liquidity Providers with Trading Fees

This enhancement enables liquidity providers (LPs) to directly receive a portion or all trading fees from Integral pools.


November 15th, 2023

How Do University Blockchain Societies Gain So Many Votes?

Explore how university blockchain societies like FranklinDAO and Michigan Blockchain have grown into influential players in DAO governance, utilizing delegated votes and strategic partnerships to shape the future of DeFi protocols like Uniswap, Compound, and Aave.


November 6th, 2023

Integral Insight: October ‘23

We give an update for our work in October and highlight a profitable LP position from a long-term user.


October 26th, 2023

Understanding the Stakes in Lido’s Growing Share of Staked ETH

The community is arguing whether a protocol may have too much control over the Ethereum network. Lido controls a large percentage of staked ETH, which could have consequences for the network’s future security and neutrality.


October 14th, 2023

Changes to Staking and Farming

Looking back at our progress so far and to the future with new updates to staking and farming.


October 11th, 2023

Integral Insight: September ‘23

We give an update for our work in September with utilization going up on higher volume for our new pools.


October 11th, 2023

The Hottest Narratives of the Summer

What were the hottest narratives of the summer? Our DeFi research team delves into the growth of trading bots, RFV traders and more in this overview.


October 2nd, 2023

Uniswap Governance: A Deep Dive

Governance is considered a critical component for the decentralization and community-driven development of DeFi protocols. We take a look at one of the largest goverance ecostystems in DeFi, Uniswap. In this blog post, we'll discuss the landscape of Uniswap's governance, pulling data from empirical research to dissect the system's delegates and proposals, revealing some interesting findings.


September 19th, 2023

What is the DAI Savings Rate (DSR)?

Our research team takes a look at the DAI Savings Rate and its influence on various yield dynamics in DeFi.


September 15th, 2023

Integral Insight: August ‘23

We give an update for our work in August with cheaper gas fees and the launch of the Integral Relayer on Arbitrum!


September 7th, 2023

Integral Relayer Launches on Arbitrum

We are excited to announce the launch of the Atomic Relayer on Arbitrum. This will bring the efficient and tested system for atomic trades to the Arbitrum Layer 2 network!


August 26th, 2023

How CRV Got Sold OTC

In this post we cover how the Curve founder sold large amounts of CRV in over-the-counter trades in order to prevent a potentially catastrophic liquidation event in DeFi.


August 18th, 2023

Integral Insight: July '23

Sharing our progress in July: preparations for atomic swaps on Arbitrum, trading SIZE with lower gas fees and more.


August 4th, 2023

Can Real Yield Replace Token Incentives for LPs?

DeFi protocols have relied on the distribution of native tokens to incentivize liquidity providers (LPs). In a previous post, we delved into traditional liquidity incentives and the utilization of vote-escrow tokens. Now, we shift our focus to a fresh approach that has captured the attention of DeFi enthusiasts: concentrated liquidity methods.


July 29th, 2023

Post-Mortem Report: Precision Error for Actions in Integral SIZE

A potential vulnerability was identified in the Integral protocol via our Immunefi bounty program. We did not observe the exploit active in production and we have since deployed a patch and the system is back to running as normal. No user funds were lost.