One week in, the SushiSwap LP has already proven to its use case to Moons long-term. A comparison with liquidity on other DEX and CEX

2 days ago, we saw a huge green dildo up on Sushiswap after a whale bought over 100k moons on Sushi, pushing the price up to 32 cents at one point.

Well I was there for the moment, and noticed something peculiar when I looked at CoinMarketCap: When the buy first happened there was a 5 cents difference between the main CEX (MEXC) and the price on SushiSwap. Moons were trading at 26 cents on MEXC, and over 30 cents on Sushi.

Looking at the sell orders on MEXC's orderbook, I further realised that a buyer could push the price up by over 3 cents just by purchasing around 10k moons in total - a sign of low liquidity in the limit sale orders. So now we start to see why Whales are buying on Sushi instead of MEXC - if the same whale decided to buy 100k moons on MEXC (instead of Sushi), he would be paying up until 40 cents or maybe even higher!

The LP has 400k USD worth of Eth/Moons deposited, so any big buys would reduce any slippage for whales.

So looking at the benefits of the LP:

• Slippage: The high liquidity (400k worth ) encourages big buys, buy reducing the slippage lost for such buys.
• Reduced volatility: We saw close to 10 cents wicks up and down on MEXC in the past due to big buys, now all the price pumps would be 'organic' per the market cap. A 100k buy rightly increased the price by 10-20%, instead of say 50%
• High liquidity: A good sign for future exchange listing, and to onboard new users (especially new whales)
• Community : Whale, shark or shrimp - everyone is welcome to contribute to the LP, which provides all these benefits for our moons. A bit like an alternative to 'staking' to secure the security of a blockchain (I know it's different, but still!)
• Visibility : The Moons/Eth LP is number 1 for liquidity on Sushi's Arbitrum Nova network. I'm not sure if there's any other Arbitrum Nova Pool on other DEXes with higher liquidity, but having the top spot for Arbitrum Nova is great for visibility to outsiders who never bought Moons before.

Be welcome to share any other benefits of the LP in the comments. In the meantime, thank you to everyone who has contributed to the LP!