Sushi

This proposal’s expectation is to produce an implementation. Full details and discussions can be found at: https://forum.sushi.com/t/sushiguardrouterv01-formal-proposal/10785

Synopsis:

SushiGuardRouterV01 implements MEV protection at the protocol level for Sushi users. Additionally, profits from arbitrage (via back running) will also be collected on chain, and will enable Sushi to generate/capture profits normally realized by arbitrage bots. The profits will be split with Manifold Finance for operating the additional infrastructure and maintenance required to operate it.

Router Upgrade features will include:

• Gas efficiency, with swaps being cheaper than with current implementation.
• Back running swaps that will leverage Kashi/Bento (as well as AAVE). Thus, Sushi ecosystem will benefit from these backrun transactions.
• Back running swaps are done on-chain, and emit an event: Sushi Guard. Allows for easy tracking of router’s profits from back running swaps, which would allow Sushi to do account specific reimbursements.

Estimated Economic Impact:

Preliminary simulations/estimates range from $420k to $1.84m in profits monthly. This is accounting for all chains that the router will be deployed on. (All chains with AAVE deployed). These profits will be split between Sushi and Manifold.

Manifold is willing to help finance the costs of the routing contract. With Sushi supporting a portion of the costs up-front that will include: on-going infrastructure costs, financing part of the router costs, and reimbursement on a portion of the audit costs that have already been completed for the router.

Total costs:

$80k USDC - to pay back Manifold for a portion of the yAcademy audit costs that has already be completed.

$250k split 50-50 sushi/usdc - pays for on-going development/maintenance. The sushi portion also won’t be sold by Manifold, and will be sat on / staked to the bar for at least 3 months and if price goes up Sushi can pocket the difference 50/50.

TLDR:

Gimme SushiGuardRouterV01 an let’s serve up some sweet omakase from the captured back run arbs