{"id":171337,"date":"2020-09-04T06:49:08","date_gmt":"2020-09-04T05:49:08","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=171337"},"modified":"2020-09-05T12:38:09","modified_gmt":"2020-09-05T11:38:09","slug":"wtf-defi-ethereums-sushiswap-forked-into-kimchi-yuno-and-other-absurd-projects","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/wtf-defi-ethereums-sushiswap-forked-into-kimchi-yuno-and-other-absurd-projects\/","title":{"rendered":"WTF DeFi: Ethereum’s SushiSwap forked into “Kimchi,” “YUNO,” and other absurd projects"},"content":{"rendered":"

Just this past weekend, an anonymous group of developers launched SushiSwap, a clone of Uniswap<\/a> with some bells and whistles attached. While many in the Ethereum and DeFi community laughed off the project, it quickly became a DeFi giant. 72 hours after it launched, there was $1 billion worth of cryptocurrency locked in the protocol.<\/p>\n

To the surprise of no one, the code of the project has been forked by other developers attempting to cash in on the success of SushiSwap.<\/p>\n

Ethereum's SushiSwap forked into a number of questionable protocols<\/h2>\n

SushiSwap's code has been forked into a number of protocols, including Y U NO (YUNO), Kimchi, Pizza, and many other of these food-themed coins. All of these tokens have seen dozens of millions of dollars worth of capital staked, with BitMEX CEO Arthur Hayes<\/a> and others in the industry dabbling in the most notable fork, Kimchi.<\/p>\n

These projects provided no intrinsic value when compared to SushiSwap but still managed to draw in this capital through high returns on staking pools. These returns were obtained by heavily inflating the supply of each protocol's native cryptocurrency.<\/p>\n

While early adopters of these projects have made large sums of Ethereum putting capital into these pools, many have lost money on these SushiSwap forks.<\/p>\n

Primarily, the losses have been incurred due to what is known as “impermanent loss.”<\/p>\n

It's a bit complicated to explain, but when coins listed on Uniswap drop heavily, to the tune of dozens of percent in a short period of time, those that hold liquidity in those pools are subject to lose their holdings.<\/p>\n

There are reports on Twitter of users losing 80 to 90 percent of what they put into these pools due to impermanent loss.<\/p>\n

Regardless, anonymous developers attempting to make a name for themselves and potentially some Ethereum have continued forking SushiSwap. As pointed out<\/a> by Joe McCann, an engineer at Microsoft and crypto trader, SushiSwap is now the second-most popular repo on GitHub.<\/p>\n

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The number 2 trending @github<\/a> repo today is @SushiSwap<\/a> pic.twitter.com\/e25yHj6jKj<\/a><\/p>\n

— Joe McCann (@joemccann) September 2, 2020<\/a><\/p><\/blockquote>\n