Greetings, Arbitrum community, delegates, and forum participants (newly minted and calcified). I’m Jared Grey, the Head Chef of Sushi, currently transitioning into my new role at the freshly formed Sushi Labs. This transition marks a shift in our governance structure, aiming for a more decentralized approach through a comprehensive governance council. This change underscores our commitment to community-driven decision-making and ensures Sushi’s continued evolution.
I want to address the comments regarding the Sushi team’s integrity, use of previous grants, the operations multisig use of the Arb airdrop, and other critical comments directed to us. Regardless of what I present or speak out about in this reply, I understand it will likely become repurposed to suit a competing narrative, as is the case when requesting resources from a limited trough in a highly competitive environment. Nonetheless, it’s time to air a reply. Sushi, at my direction, held back from participating in the banter and baseless accusations made against our team over the past several weeks while we dealt with a heavy-handed, multi-month governance attack by entrenched parties to overtake the DAO and use the protocol as its piggy-bank. For the past 17 months, I’ve led the Sushi Swap team in overhauling DAO processes, refactoring one of, if not the most, multi-chain DEX protocol stacks in the industry, shipping wholly new and innovative routing and aggregation tech, and revising tokenomics (although down-voted during the gov attack counterparty during snapshot delaying its implementation), and supported many new projects across multiple newly, and legacy, integrated networks, including Arbitrum. A bit of history regarding Sushi’s commitment to Arbitrum: Sushi was the first DEX to launch on Arbitrum, supporting most OG DeFi protocols that call Arbitrum home today. We launched in the 70th block and emitted tens of millions worth of rewards to OG projects to boost growth and bring users to the Arb network. Our cross-chain product, SushiXSwap, was one of the most heavily used cross-chain access points for accessing Arbitrum in its growth phase. According to NPS feedback from multi-DEX users, Sushi provides some of the best swap UXs. Unfortunately, our delay, due mainly in part to the governance attack mentioned above, in providing updated tokenomics to support liquidity mining rewards led to the exodus of protocols to newer token life-cycle DEXs vying for a competitive entry into the market, seeing Sushi’s prominence on the Arbitrum network drop from its top spot.
Sushi has been a trusted partner for many networks, and it takes its commitments to grant issuance very seriously. During my tenure, Sushi has operated under its commitments for newly acquired grants with utmost diligence and transparency. It has not abused, misallocated, or misspent grants, and it will execute the Arbitrum grant, if received, as is proper under the terms set forth by the Arbitrum DAO and councils. We’ve been a vocal proponent of more robust and thoughtful liquidity campaigns to support the Arb token and its stakeholders but have yet to succeed due partly to a focus on traditional liquidity mining practices. Regarding the Arbitrum airdrop to DAOs supporting the network in its earliest growth period, the Sushi operations team secured the airdrop on behalf of the DAO, taking part in the governance process for partner protocols, et al. No commitment existed to distribute the airdrop to token holders. While the Arb airdrop campaign gave discretion to the protocols and their communities to manage the airdrop as they saw fit, it was best to continue to support Arbitrum DAO’s growth phase.
Lastly, I want to broadly address the statements on this forum post, many of which come from adversarial parties with a vested interest in the recent governance attack. Despite these challenges, Sushi remains committed to supporting the Arbitrum ecosystem. We hope the DAO will continue to operate with fairness and due diligence on any claims against or on behalf of any protocol, as we believe in the importance of a robust and transparent governance process.