Draft Proposal - Switch preferred DEX to SushiSwap

Hey all,

After working on this for the last few days, and seeing @state.eth his post on increasing PUNK-BASIC liquidity, I’ve prioritized finalizing the proposal.

Before I do post this towards snapshot (targeted on Monday 12:00 CET), I’d like to share this draft proposal with all of you to see if I’ve missed anything critical. For the liquidity allocation on SushiSwap (under specifications) I expect @alexgausman to weigh in for the PUNK-BASIC/ETH sizing. NFTX/ETH and PUNK/ETH remain their current liquidity.

Action before Monday 12:00 CET: If you have any comments or additions to this proposal, please comment below so I can include them in the final snapshot vote. Thanks! <3

Proposal: Make switch in preferred DEX to SushiSwap




Switch current and future D1/ETH, D2/ETH and NFTX/ETH liquidity pools from Uniswap/Balancer to SushiSwap, with the main goal to:

  • Accrue more value for the NFTX treasury through the SushiSwap rewards program.
  • Position ourselves closer to innovation happening in the Sushi/Yearn ecosystem and form a closer relation with their core teams
  • Have our liquidity provided in an ecosystem that aligns better with the values of NFTX.

If this vote passes, liquidity will be migrated from Uniswap & Balancer over the upcoming weeks. The outcome of this vote will not prevent the DAO from providing additional liquidity on other exchanges in the future.


The NFTX DAO has seen some great success in its community raise, collecting over 1000 high value NFTs (Non Fungible Tokens) alongside more than 2000 ETH in return for NFTX governance tokens.

NFTX builds an ecosystem of NFT-backed index funds for investors that want to gain exposure to the digital collectibles industry, without having to be an expert on individual collectibles.

We want to bootstrap this mission by acting as the main liquidity provider (LP) for NFTX index funds, as well as the governance token.


The AMM on which we’ve provided our original liquidity (Uniswap for NFTX/ETH & D2/ETH, Balancer for D1/ETH pools) have had good effects for short-term exposure of the DAO, growing the community to over 1000 members (taken from Discord) and being featured on key publications such as The Defiant and DappRadar.

With that said, now is the time to start looking at mid/long term value for the DAO. As the main liquidity provider for both NFTX/ETH & all NFT index funds, fee accrual currently acts as the main cash flow for the DAO. Maximizing these flows without damaging our reputation & integrity should be top priority to grow the DAO.

I therefore propose to switch over current liquidity of all 50/50 pairs from UniSwap & Balancer towards SushiSwap, with the main goal to receive additional rewards on liquidity provided through $SUSHI rewards.

Additionally, doing this will push the DAO in a closer relation to the SushiSwap community & team, who has recently published its innovative 2021 roadmap. As our main audience are people looking to invest in NFT index funds, being part of this innovative ecosystem of builders is a good bet on setting ourselves up as the primary NFT index fund provider.

If this proposal passes and we get the green light from the SushiSwap core team on being added to Onsen with our most liquid pair NFTX/ETH, the additional cash flow moving into the DAO treasury will come close to 470,000 USD/year (at a 4$ / Sushi price), including vested Sushi.


The 50/50 ratio pairs that the DAO would migrate to Sushiwap after this proposal passes:




Additional D1 Punk pools on Balancer would be closed, with ETH being added to the D2 PUNK-Core Balancer pool at an allocation of 5%. Adding additional D1/ETH pairs to Sushiswap may be done over time to increase liquidity for in-demand NFT indexes, dependent on DAO treasury management.

Future NFT index fund categories which are planned to launch in the upcoming weeks (Axie, Avastar, Glyph, Joy & Cryptokitties) would be set up in similar fashion (all 50/50 pools on Sushiswap, off-balance D2 pool on Balancer).

The listing process, including setting the original ratios, will be controlled and executed by Alex Gausman (project founder and core developer) through Aragon DAO agent.


Some points to consider when voting on one of the options below:

  • The exchange picked through this proposal should not be seen as a final and exclusive choice. The DAO may always switch liquidity between exchanges based on market dynamics, or provide liquidity on multiple exchanges in the future.

  • Fees captured by being a liquidity provider will stream back as cash flows to the DAO treasury, which is managed through governance voting. While there are currently no allocations made for these fees, a proposal can be made by any DAO member.

  • As the main mission is to bring liquidity to NFTs through index tokens, a preference goes out towards picking an exchange that provides NFTX with the highest community exposure.

Vote Choices

  • Yes, move current and future liquidity over to SushiSwap
  • No, keep current and future liquidity on Uniswap
Sentiment poll
  • Yes, move current and future liquidity over to SushiSwap
  • No, keep current and future liquidity on Uniswap

0 voters


Vote Choices

  • Yes, move current and future liquidity over to SushiSwap
  • No, keep current and future liquidity on Uniswap

Hey, I would push this as a poll to test sentiment as well. I would also add editing existing documentation to the specifications. Otherwise everything looks on point to me.

I agree with moving current and future liquidity over to sushiswap. Being as close as possible to innovators can lead us to more growth imo. We also diversify treasury by receiving sushi rewards.


I’m in favor of this. The Sushi team seems really open to onboarding promising new projects (like us!), and having additional liquidity incentives seems great.

The other thing is just that we should communicate this well ahead of time and remember to link people to the Matcha article on how to acquire NFTX in case people are used to using only Uniswap.

There only seems to be upsides to this proposal, and more money into the treasury is always a good thing. I don’t know enough about it to make the argument either way, but unless anyone can point out clear reasons not to I’ll be voting yes to prop 45 :slight_smile:

Yes great point. It would be worth looking at any existing FAQ’s and external articles that mention UniSwap (I’ve written one, I’m sure there’s others) and try to get those updated also.


Never been on sushi myself and always traded on UNI and i am up for the pool migration given is better suited for the DeFi peeps rather than NFT people plus the annual 470k for the treasury .

The other reason i am for this proposal to pass is because i want to learn more about DeFi and this is a good opportunity.


The sushi from onsen will be a great revenue stream for the DAO, and I personally think aligning ourselves with the sushi/yearn ecosystem is a good move.

I support this


Yes I am in favor as well, because (A) it’s free revenue, and (B) Sushi has made an effort to reach out and onboard us which means they value us as ecosystem partner.

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