SushiSwap
SushiSwap pools by connecting their Ethereum wallet to the SushiSwap farming software and locking two assets into a smart contract.
Last updated
SushiSwap pools by connecting their Ethereum wallet to the SushiSwap farming software and locking two assets into a smart contract.
Last updated
SushiSwap is a decentralized exchange (DEX) based on the Ethereum blockchain. By nature, SushiSwap is an automated market maker (AMM) that uses its liquidity pool to facilitate trades. Created as a fork of UniSwap, SushiSwap has worked hard to build its own identity, and is currently going through a soft rebranding towards the name Sushi.
A decentralized exchange is quite different from centralized exchanges like Binance, Coinbase, and KuCoin. SushiSwap is owned by a community of users who share the decision-making power amongst themselves, whereas centralized exchanges are private companies that work more like traditional companies. Some people believe that a DEX is much more loyal to the ideology of the blockchain than a CEX, because it is owned and run by the people and independent of a central authority,
SushiSwap allows users to trade a variety of cryptocurrencies without the need for intermediaries or central authorities. Users of the platform trade against a liquidity pool rather than using traditional order books since the site employs an automated market maker (AMM) mechanism.
SushiSwap operates on a similar automated market maker (AMM) model as Uniswap, meaning that liquidity providers add funds to liquidity pools, which are then used to facilitate trades between different cryptocurrency pairs. Users can trade cryptocurrencies directly from their own wallets without the need for a centralized exchange.
Although it is based on Uniswap’s protocol, SushiSwap does a lot of things differently. Instead of Uniswap’s 3-tier reward system, it offers a flat fee of 0.3%. UNI tokens, even though rewarded to users at first, are no longer given out to liquidity providers. However, they are still regularly offered in SushiSwap’s system to people who stake their tokens. Apart from that, Uniswap’s tokens were distributed through an airdrop, whereas SushiSwap’s tokens were distributed through a more formal structure (Initial Exchange Offer).
SushiSwap’s website displays the running price of the SUSHI token, the total liquidity, total volume, and total pairs. It also shows a counter of the days since the commencement of Sushi. As of March 27th, 2023, it shows 943 days. SushiSwap is endorsed by well-known blockchain platforms like MetaMask, Polygon, zkSync, and BarnBridge.
Perhaps the best thing about using the platform is that SushiSwap places a lot of importance on user experience. The exchange has 400 tokens that are readily available to all users without the need for any sort of registration. It allows users to find the best exchange rate regardless of their network at a blazing-fast speed with no extra fees.
It also allows staking so that instead of lying idle, your money is working for you around the clock. In addition, SushiSwap encourages developers to actively take part to “help build the future with Sushi”.
