One of the latest trends in the decentralized finance (DeFi) market is SushiSwap, an infamous fork of the decentralized exchange Uniswap, created by the anonymous developer “Chef Nomi.” The protocol took over the market by storm and amassed more than $1.1bln of value locked in its liquidity pools in a matter of days.
The platform’s anonymous founder soon got involved in controversies regarding a possible exit scam after withdrawing $13 million from $SUSHI’s liquidity pool on Uniswap, a fund that was supposed to be used to finance the development of the project, and people started labeling it as an exit scam.
Power in the right hands
Following this event, the price of SUSHI fell from $9.5 to $1.13, and this compelled Chef Nomi to handover control to FTX CEO Sam Bankman-Fried on Sep. 6 in a surprise takeover.
Chef Nomi responded to the angry community stating that this was not an “exit scam” justifying his move stating that he did it because he cared for the community.
“People asked if I exited scam. I did not. I am still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure we have a successful migration,” he said.
But DeFi enthusiasts were not convinced with this answer and as the token continued to dive down Bankman took over the protocol and the community has responded quite positively.
He noted that the keys of SUSHI would be transferred to a multi-sig, which would then become decentralized as it will be controlled by leaders elected by the community.
Following the transfer of keys to Bankman, Chef Nomi tweeted:
“I hope SushiSwap does well without me. Again I did not intend to do any harm. I’m sorry if my decision did not follow what you expected. But I want to stress again and I did not intend to scam anyone. No LPs are lost whatsoever. I kept all my promises.”
He was even questioned by Yearn.finance developer Andre Cronje, who questioned:
“What do you mean “without me”? Are you leaving the project? If so, are you giving the dev funds back? All you did so far was hand over a token that was built off of Uniswap Protocol. Weren’t the funds meant to further develop? Aren’t you that developer?”
The change in power was followed by the price of $SUSHI rallying upward after the announcement from $1.24 to highs of $3, according to CoinMarketCap.
However, many still question if Chef Nomi will return the $13 million he withdrew from Uniswap.
Bankamn summarized the entire SushiSwap fiasco as:
“a) Nomi sucks and hurt the community
b) Sushi shows promise as a dynamic AMM built by the community
c) If Nomi doesn’t step down, it’s over for Sushi.
d) If Sushi adds a division on Serum, we’ll give 5mm SUSHI to farmers
e) Either way, AMMs coming to Serum.”
Arthur Hayes, CEO of BitMEX expressed his optimism alongside other industry executives, tweeting:
The CEO of Three Arrows Capital, Su Zhu, also said that he is in support of the takeover.
“Love it, and ETH def needed this at 320,” commented Zhu.