After the success of Uniswap, many participants started entering the race of decentralized exchanges. The developers are trying to introduce a few innovative features to bring more customers to their platform. Sushiswap is one of the decentralized exchanges that was launched following the success of Uniswap.
In fact, it shares most of its features with Uniswap because it was introduced as a hard fork of Uniswap. Thus, it managed to attract investors to invest in this project. However, it’s now working as an independent platform.
The centralized exchanges are controlled by a single entity. Only one company or a group of companies is responsible for managing reserves and setting rules and regulations for the platform. A decentralized exchange, on the other hand, is run by its participants. The participants help with providing liquidity for the platform.
Thus, they don’t need to worry about the privacy of their data. Like centralized exchanges, these exchanges also charge trading fees but the fee is directly transferred to the liquidity providers rather than going into the platform’s reserves.
Sushiswap is a decentralized exchange built on Ethereum. Like several other decentralized exchanges, Sushiswap uses an automated market maker protocol to complete the transactions. The platform uses a unique algorithm to consistently manage the prices of tokens locked in different pools.
Sushiswap relies on its community members for the development of the project. Thus, the platform can introduce innovative features that aren’t available on other platforms. MISO/Minimal Initial Sushiswap Offering is one of the most useful features of the platform that was implemented as a result of a governance proposal.
Sushiswap was introduced by Chef Nomi and 0xMaki in 2020. The founders kept their identities hidden by using pseudo-names. The foundation of the project was laid using the code base of Uniswap. The founders created a liquidity pool on Uniswap to collect funds from investors who were interested in supporting the project.
The funds from that pool were transferred to Sushiswap when the project went live. A huge number of Uniswap users invested in this project because the team promised to return an additional amount of SUSHI tokens to the users who were migrating their funds from Uniswap.
But the investors got worried about their investments when Chef Nomi withdrew $13 million from the Uniswap-based pool before the funds were moved to Sushiswap. However, Chef Nomi returned those funds after a few days and apologized for his actions. Sam Bankman-fried then moved those funds to Sushiswap under his administration.
It’s worth noting that the community members have proposed to rebrand the project as Sushi because the current name is difficult to pronounce.
Like other decentralized exchanges, Sushiswap doesn’t maintain a traditional order book because it uses an automated market maker to execute transactions. Sushiswap uses a set of smart contracts to successfully process trades within liquidity pools. The users can lock their crypto tokens in these liquidity pools to earn rewards on a regular basis.
The traders can buy and sell their desired tokens from these pools by paying a transaction fee. If there’s a pool of BTCUSDT, the trader can exchange BTC for USDT without having to wait for the seller because they’re directly buying those tokens from the platform’s reserves. The platform transfers a portion of trading fees to the liquidity providers for continuously providing liquidity.
Sushiswap introduces a few innovative ways for users to generate passive income.
SUSHI token holders can stake their tokens in Sushi bars to earn xSushi tokens. With this feature, the users get to earn 0.05% reward fees from all the trades that are taking place in different liquidity pools.
The platform has introduced its own NFT marketplace known as Shoyu. This marketplace is primarily designed to appreciate the work of artists, singers, and other creators. The users can trade different NFTs on this marketplace for a reasonable fee.
The interesting part is that the investors can stake their xSushi tokens on this marketplace to earn 2.5% of every NFT trade. Moreover, these token holders can also earn rewards from BentoBox by staking their assets.
BentoBox is an innovative vault that introduces a multipurpose solution for earning rewards. The users can deposit their digital assets in this vault to earn interest from staking on Sushibar. At the same time, they can earn interest by lending their tokens to other users within the platform.
Sushiswap shares most of its features with Uniswap. However, Sushiswap introduces more community-focused features to provide a better customer experience. Sushiswap trusts its community members with decision-making whereas Uniswap has a team of experts that handle the project’s development following the latest trends.
Although Uniswap still has more liquidity, Sushiswap can be a better option for those who want to participate in the governance of the project.
SUSHI is the native token of Sushiswap that can be used to pay trading fees. The users can also earn rewards by staking these tokens within the platform. With a circulating supply of 222 million tokens, it has a market cap of $282 million. It has a total supply of 250 million tokens. The remaining tokens will be released through a rewarding process.
Sushiswap is a decentralized exchange built on Ethereum. This exchange was designed to transfer governance rights to the community members because Uniswap doesn’t offer any such benefits. Moreover, it offers more earning opportunities for investors. If you need more information about how Sushiswap, feel free to get in touch with us.