- The SushiSwap group has voted on coverage modifications to the protocol to scale back the token reward schedule, introduce a lock-up interval for newly minted Sushi, and introduce charge staking. However these modifications can’t be made with out first migrating to new good contracts, a analysis agency instructed CoinDesk.
- The present MasterChef contract doesn’t allow modifications to the SushiToken contract, which in flip dictates different protocol features for minting SUSHI tokens and for paying fee-staking rewards to SushiSwap holders.
- Every good contract must be manually migrated to make the modifications, the analysis agency claims, although the SushiSwap workforce is in search of workarounds that don’t require as a lot heavy lifting.
The SushiSwap good contract migration is full however there’s an issue: One other migration could also be wanted if the workforce desires to implement modifications to the protocol the SushiSwap group voted for.
Limitations in SushiSwap’s code make the proposed modifications unimaginable with out severe alterations to SushiSwap’s code, particularly one other migration, blockchain analysis agency IntoTheBlock instructed CoinDesk.
The SushiSwap community just voted to lower the Sushi token reward – a so-called liquidity supplier (LP) token which is rewarded to sushi customers who stake tokens in SushiSwap’s liquidity swimming pools – from 100 SUSHI per block to 50, with successive halvings each two years. As well as, this transformation would come with a “vesting” mechanism whereby two thirds of all newly minted SUSHI are locked for one 12 months.
These vested tokens would earn transaction charges however couldn’t be moved or utilized in voting till the year-long timelock expires. The vesting proposal is especially germane to this venture after its progenitor, Chef Nomi, offered off $13 million worth SUSHI tokens for ether final weekend. Chef Nomi recently forfeited this fortune, although, asserting on Twitter that he despatched the 37,400 ether he garnered from buying and selling in his SUSHI tokens to the SushiSwap treasury.
Sushi unrolled
These proposals received a landslide majority vote among the many group, however IntoTheBlock instructed CoinDesk SushiSwap’s present good contracts aren’t versatile sufficient to bend the principles of the protocol.
The MasterChef contract, for example, doesn’t enable for the reward schedule to be altered as a result of the emission price is “exhausting coded.”
“…[T]he present model of the MasterChef good contract has exhausting coded the variety of SUSHI tokens per block that may be awarded. This has been executed through the sushiPerBlock variable which is initialized at a worth of 100 on the contract creation time and may’t be modified after that. You’ll be able to see the reference in line 96 of the MasterChef smart contract. In easier phrases, altering the worth of the sushiPerBlock variable would require deploying a brand new good contract,” reads an IntoTheBlock analysis doc shared with CoinDesk.
Happily, there’s really a repair for this limitation that doesn’t require one other migration: Even when the reward is hard-capped, it’s attainable to ship additional rewards to a dead-end handle that nobody has entry to (thus, to lower rewards from 100 SUSHI to 50 SUSHI, each block reward would ship 50 of the 100 SUSHI minted to this dead-end handle).
“Though intelligent, this selection is much from elegant and falls outdoors the unique design of the SushiSwap protocol,” the report reads.
The good migration: What this could imply
Greater than inelegant, fixing the opposite limitations would require an overhaul of SushiSwap’s good contracts fully. The issue stems from a design alternative whereby the MasterChef contract (which has management over the protocol) is just not upgradeable and really owns the SushiToken contract, so migrating to a brand new MasterChef contract (e.g., MasterChefV2) would additionally require deploying a brand new SushiToken contract (SushiTokenV2), in response to IntoTheBlock developer Pablo Bianciotto.
“The limitation arises from the truth that MasterChef is just not upgradeable,” he instructed CoinDesk. “To be upgradeable, the precise contract logic needs to be saved in one other contract which is referenced by MasterChef. That will provide the flexibility to alter minting/rewards distribution logic by changing this secondary contract for a brand new one and updating MasterChef reference.
“Along with that, SushiToken is owned by MasterChef, so creating a brand new MasterChef V2 contract with a brand new reward distribution logic and upgradeable options would require migrating the SushiToken contract, too.”
To implement vesting, for instance, would require a MasterChefV2 and a SushiTokenV2 Bianciotto mentioned.
The code’s limitation would additionally intrude with implementing the charge payout proposal as a result of there’s no approach to switch the vested tokens from the MasterChef contract into one other contract for charge staking.
“This half is even tougher to do,” Bianciotto mentioned. “To earn charge funds it’s a must to stake SUSHI into the SushiBar contract, but when your SUSHI rewarded for staking is vested and sitting in MasterChef, you wouldn’t be capable to switch it from MasterChef to SushiBar to earn charge funds.” He added {that a} SushiBarV2 would should be spun as much as accommodate this transformation, in addition to a brand new SUSHI token minting contract (SushiMakerV2).
A cascade impact
In impact, the MasterChef contract’s non-upgradeable nature creates a cascading impact whereby each good contract below its management additionally requires an improve to make the proposed modifications to the protocol. The one resolution, then, includes migrating every good contract to a very new model.
Seeing as every contract would should be redeployed, this migration course of can be extra labor intensive than the earlier one. Absolutely migrating every good contract would concerned taking a snapshot of all person’s balances and airdropping new tokens after the brand new contracts are deployed, in addition to migrating particular person person information from all of SushiSwap’s liquidity swimming pools; customers would additionally must unstake all SUSHI tokens within the SushiBar and in SUSHI/ETH staking swimming pools previous to the snapshot.
Biaciotto mentioned that whereas the snapshot and airdrop could appear easy for person addresses, “good contracts that depend on SushiToken might cease working until they’re upgraded to make use of the brand new SushiTokenV2.”
He additionally famous there “are not any time constraints” for these modifications. He really useful a clear and methodical migration that additionally “clears the way in which to seamlessly including/altering protocol options sooner or later” to keep away from having to implement additional modifications by means of one other migration.
Group response
CoinDesk reached out to SushiSwap’s newly elected leadership (these members who maintain one in all 9 multisignature keys to dictate protocol growth) to ask if they’re planning one other migration.
“No migration within the brief time period,” responded 0xMaki, the lead developer of SushiSwap, who has been with the venture from the beginning. 0xMaki continued that they want to implement the vesting and fee-staking proposals however that “it would require extra pondering” to tug off.
Bianciotto, although, insisted the “the one method ahead [to implement these proposals] appears to be doing a migration.”
One other workforce member insisted that such a migration can be “considerably simpler” and that there’s “no concern in any respect of any issues on the horizon.” Bianciotto reaffirmed that since “SUSHI is owned by MasterChef,” that “any sort of migration is non-trivial.”
To corroborate IntoTheBlock’s analysis, CoinDesk reached out to Zokyo Labs, a blockchain safety and growth firm with a DeFi studio. A Zokyo consultant confirmed IntoTheBlock’s findings.
