Sunder Protocol x Sushi Integration

Sunder Finance & SushiSwap announced integration to enable a solution under which participants can enjoy both DAO participation & earning yield on governance tokens in an efficient manner, as well as new forms of pricing/speculation over the above-mentioned isolated utilities.

Whether preserving a mutually inclusive environment for governance rights and interest bearing products, or opening the doors towards new and more concrete ways of speculation over these same utilities, the core concept of Sunder is to offer a new solution to the industry that breaks down one of the last unresolved dilemmas of exclusion.
Bridging two of the core features of DeFI, participants will now be able to benefit from financial strategies with revenue-generating outcomes while not needing to sacrifice their right of participation in governance on the protocols they hold partial ownership of. Eliminating sunk costs of having to actively manage governance token allocation, leaves room for binding a closer symbiotic relationship between both Decentralised Finance applications and their respective DAOs.

In addition, given the approach taken, participants are given the opportunity of isolated speculation over each feature.
For the first time, the market will be able to determine concrete pricing over single utilities, whether its voting rights over Governance, or the opportunity of earning yields over any underlying.
The importance of creating a free market for the DAO and Earnings component enables a solution for users to define a set price for voting rights as well as future earning rights in an isolated manner. Bringing the industry one step further in finding an answer over how Governance Tokens can be utilised and priced in a more efficient way.

In essence, the vision of Sunder Protocol is to allow any user to extract full value of governance tokens through Sunder Protocol.
Participating in governance while earning yield to be simultaneously achievable, without excessive overhead cost spent on fees.
Governance Participation should not be an excluding factor for alternative utilities, left available to fewer large holders.

Infrastructure

The key component that allows for executing such a value proposition, is the architecture of splitting (ergo sundering) any governance token into isolated tokens to represent Governance vs Earnings. In order to trigger minting of these, the Sunder Protocol requires depositing of underlying governance tokens e.g. COMP, providing decentralised vault services.

• Vaults optimize exposure to bearing interest vs. allocating governance participation.
• Participants seeking for isolated exposure can directly purchase dedicated isolated tokens for their desired use (e.g. DCT or ECT), at a fractional cost of its underlying.
• Participants exposed to both can now participate in governance while bearing interest without requiring expenditure on additional fees. Vaults facilitate gas optimization for users

Dtoken holders can vote on any proposal mirrored from an original proposal executed by the underlying DAO. Sunder will use its snapshot based software to collect voting participation from Dtoken holders as an input to ‘For Contract’ and ‘Against Contract’. Any participant can trigger the transaction to execute the needed rebalancing of both contracts, by moving collateral from the earnings vault to the voting contract, and hereby delegating underlying governance tokens to be used for voting accordingly.

What is SushiSwap?

Sushi is the home of DeFi. Their community is building a comprehensive, decentralized trading platform for the future of finance.

What is Sunder Protocol?

Sunder Protocol provides decentralized vault services with fungible tokens on both Ethereum and Binance Smart Chain. It allows the market set coverage prices as opposed to using bonding curves. The process starts when market makers (MMs) deposit collateral to split tokens. MMs will receive two types of fungible DAO tokens and Earning tokens in exchange for their deposit. MMs can choose to sell the fungible token(s) to earn premiums, or provide liquidity in DEX pools with the fungible token(s) and earn fees. Governance seekers can then buy the DAO tokens to vote. Yield seekers can buy earning tokens to earn profit.

📰 INFO:

https://sunderfinance.medium.com/presenting-sunder-protocol-x-sushi-integration-1a86b639e976