SushiSwap exchange lets you swap, earn, stack yields, lend, borrow, and leverage all on one decentralized, community-driven platform. This SushiSwap review displays an up-to-date, detailed analysis of the Sushi Swap exchange containing everything you need to get started with SushiSwap.
Let’s find out!
SushiSwap review
SushiSwap was created in 2020 by SushiSwap CEO, a pseudonymous individual or group called Chef Nomi, along with co-founders SushiSwap and 0xMaki.
The founding team copied the open-source code used by Uniswap to create the foundation for SushiSwap, making SushiSwap a copy/clone of Uniswap with more benefits.
SushiSwap was then able to build its user base by promising its users its native token called SUSHI. The SUSHI token rewards will be given to users if they locked up their funds in a special pool on Uniswap.
The SushiSwap token operates as a decentralized autonomous organization (DAO), enabling decentralization in decision-making. So holders of the token can be able to participate, make and propose changes in the SushiSwap ecosystem.
What is SushiSwap?
SushiSwap is a software running on Ethereum that seeks to reward a network of users to operate a platform where users can buy, sell, swap, earn crypto assets, and more.
Similar to platforms like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools to achieve this goal. Users first lock up assets into smart contracts, and traders then buy and sell cryptocurrencies from those pools, swapping out one token for another.
SushiSwap review: Key features of SushiSwap
Decentralization in Decision Making
The voting rights granted by xSUSHI tokens can’t be understated and allow the user to vote on certain aspects of the token and exchange.
Lending, and liquidity
SushiSwap users have options for gaining liquidity, which is a huge asset. This lets users forge their own path to success – whether by providing liquidity, lending, or staking at the SushiBar.
Incentivized pools
SushiSwap provides extra incentives to selected liquidity pools, in a program known as Onsen. These incentives secure more liquidity on new or popular markets, with incentivized pools found in the “Yield” tab on Sushi.com.
Staking
SUSHI token holders are entitled to share a 0.05% fee from each trade made on SushiSwap. Once tokens are staked, users will receive xSUSHI tokens, representing their stake in the SushiBar pool. These xSUSHI tokens grow in value over time, in proportion to a user’s share of the fees gathered.
Sushi Analytics
Sushi Analytics is a product of SushiSwap that enables tracking the liquidity, volume from top markets, and fees generated by Sushi products.
SushiSwap review: SushiSwap Pros and Cons
Pros
- Ability to Swap: Trade one cryptocurrency for another, such as turning your USD Coin (USDC) into Ethereum (ETH).
- Sushi Swap news: A hub of educational content about Sushi Swap, its improvements and integrations with other platforms, and how you can leverage these integrations.
- You don’t need an account to use SushiSwap: All you need to use SushiSwap is a crypto wallet. On the SushiSwap app, you connect your wallet, and then you can use it to swap, lend, or borrow crypto.
- Governance token: As a governance token, SushiSwap gives holders voting rights on the future of the exchange. If you buy SUSHI, you can vote on proposals and help determine what happens with it.
- Ability to earn: Sushi owners can participate in community governance and stake their tokens to earn some of SushiSwap’s transaction fees, also known as gas fees.
- Lending and Borrowing: With SushiSwap lending you can provide crypto for others to borrow and earn interest on it. It also lets you borrow crypto after providing collateral.
Cons
- Limited to ETH-based tokens: This platform is built on the Ethereum blockchain, which means that the crypto options are limited to Ethereum-based tokens.
SushiSwap review: How SushiSwap works?
SushiSwap works differently from centralized exchanges like Blockchain.com and Currency.com. where trades are made between users. These centralized exchanges are the custodians of customer deposits, which are much like those of an online stock brokerage.
Employing a decentralized exchange like SushiSwap, users are responsible for their individual cryptocurrency wallets. Its core function is to mirror a traditional exchange by facilitating the buying, selling, and swapping of different crypto assets between users.
SushiSwap tokens are supported by smart contracts rather than a single central entity, and users can lock crypto on the software for traders to access.
Of note, those who trade against locked assets pay a fee that is then distributed to all liquidity providers proportionally, based on their contribution to the pool. Liquidity providers contribute to SushiSwap pools by connecting their Ethereum wallets to the SushiSwap farming software and locking two assets into a smart contract.
SushiSwap Farms
SushiSwap Farm allows users to yield farm Sushi rewards with each new block based on the staked SLP tokens they received from the exchange pool.
The farm previously supported UNI-V2 LP tokens from Uniswap, but it now only works with tokens from SushiSwap pools.
Buyers can then swap tokens within the pool based on the protocol’s rules. Smart contracts running SushiSwap take the number of tokens from the buyer and send an equivalent amount of tokens back, keeping the total pool price constant.
In exchange for maintaining liquidity in these pools, providers are rewarded with protocol fees as well as a share of the daily 100 newly minted SUSHI.
Providers can reclaim their funds whenever they wish, along with their “harvest,” which is the cryptocurrency earned from farming.
Users can use the SushiBar, an application that enables them to stake their SUSHI to earn the xSUSHI token, which is made up of SUSHI tokens bought on the open market with a portion of all the fees generated on the exchange if they want to continue earning cryptocurrency after harvesting their SUSHI.
SushiSwap review: What is SushiSwap Coin?
Sushi (SUSHI) is an Ethereum cryptocurrency token tied to SushiSwap decentralized exchange. Owners of Sushi can take part in community governance and stake their SUSHI tokens to gain a portion of the transaction fees from SushiSwap in xSUSHI.
Versions of the token can also be found on the Solana, Avalanche, Binance Smart Chain, Polygon, Terra, Celo, Harmony, Fantom, and xDai networks, among others.
Sushi is a well-supported token that works across multiple blockchain networks. It’s used as the native cryptocurrency of the SushiSwap decentralized exchange (DEX).
As of the time of writing this article, SushiSwap price is $1.29 and SushiSwap exchange volume is $23,495,973.38 in 24 hours, according to coinmarketcap data. SushiSwap has a market cap of $745,070,009.14.
The token has a circulating supply of 127,244,443 SUSHI coins and a maximum supply of 250,000,000 SUSHI coins. SushiSwap exchange allows swapping between 11,700 currency pairs.
Why use SushiSwap?
Sushi Swap is a DEX that lets you swap, earn, stack yields, lend, borrow, and leverage all on one decentralized, community-driven platform.
SushiSwap may appeal to traders because it gives them access to newer, less liquid cryptocurrencies that aren’t available on more established exchanges.
Investors who think decentralized exchanges will continue to draw users who want to take advantage of a trading environment without having to entrust money to a third party may want to add the SushiSwap token, SUSHI, to their portfolio.
Lastly, SUSHI may also be of interest to investors who seek to access a wide range of projects built on the Ethereum blockchain.
SushiSwap review: How to Use SushiSwap
First off, you don’t need to create an account to interact with SushiSwap. All you need is a cryptocurrency wallet.
You will need Ethereum tokens to complete transactions in order to use Sushi, regardless of the transaction. Please make sure that your hardware or digital wallet has ETH in it. Then, go to sushi.com and click “Connect Wallet” to begin.
When you connect your wallet, SushiSwap will be granted access to the tokens stored there. You will also be asked to accept a small connection fee.
Keep in mind that this fee, which is imposed by the Ethereum blockchain, is a requirement for a successful connection and cannot be waived. In other words, make sure you have enough Ethereum tokens in your wallet to cover the gas costs associated with transactions.
Now Let’s try swapping
Step 1
After connecting your wallet, visit here to proceed with a trade and select the token you wish to sell and the token you wish to buy.
Step 2
If you cannot find the token you are looking for, you can search for it in Etherscan, copy its “token contract address,” and paste it into the search bar on SushiSwap’s exchange.
Step 3
After selecting your desired tokens, input the number of tokens you wish to sell. You will see how many new tokens you will receive, the price impact, and the total fee.
Step 4
After approving Sushi’s access to use your tokens and clicking “Swap” then “Confirm Swap,” you will receive a prompt from your wallet asking you to approve the trade and the gas fees associated with the trade.
Once you approve the trade again from your wallet, the transaction will execute, and you just have to wait a while for the process to complete. You can see the status of your transaction in your wallet or by copying the transaction hash and checking it on Etherscan.
Cryptos listed on SushiSwap
Available cryptocurrencies on SushiSwap include any ERC-20 token. Because SushiSwap is built on Ethereum, it allows any and all Ethereum-based tokens on its platform. As a result, there are hundreds of options available.
SushiSwap Fees
One big benefit of using this platform is that the SushiSwap Exchange fees are limited to users who are swapping tokens or coins on the platform. Otherwise, there are no fees to contend with.
| Feature | SushiSwap Fee |
|---|---|
| Swapping | 0.3% user fee broken down by: 0.25% to liquidity providers; 0.05% to xSUSHI holders as a governance fee. |
SushiSwap review: SushiSwap vs Uniswap
SushiSwap and Uniswap are two very similar competing decentralized exchanges (DEXs) built on the Ethereum blockchain. While UNI handles more volume and has been around quite longer, SUSHI does have some unique benefits, such as yield farming and an array of bonuses for token holders.
SushiSwap
SushiSwap is a decentralized exchange (DEX) that employs an automated market maker (AMM) that uses smart contracts to create markets for trading pairs of various tokens.
These smart contracts receive their funding from liquidity providers, which facilitates frictionless trading. The exchange, which started out as a fork of UniSwap, was one of the first to use this model.
It later developed into one of the largest DeFi exchanges and is now accessible on almost all layer-one blockchains that are EVM compatible, as well as a number of layer-two Ethereum solutions.
Uniswap
Uniswap is a decentralized, protocol-based cryptocurrency exchange. The company that created the Uniswap protocol originally went by the name of Uniswap.
The protocol uses smart contracts to enable automated exchanges between cryptocurrency tokens on the Ethereum blockchain.
As of October 2020, Uniswap was estimated to be the largest decentralized exchange and the fourth-largest cryptocurrency exchange overall by daily trading volume.
The below table shows a detailed comparison of SushiSwap vs Uniswap.
| Features | SushiSwap | Uniswap |
|---|---|---|
| Liquidity Mining | SushiSwap's liquidity mining is still operational. Liquidity providers earn governance tokens indefinitely by staking their tokens in liquidity pools. | As an incentive for liquidity providers, Uniswap once distributed some of its UNI tokens through liquidity mining. |
| Swap Fees | SushiSwap charges all business teams a flat 0.3% fee. Furthermore, dish token holders receive 0.05% of the 0.3%, while liquidity providers receive 0.25%. | It provides a three-tier fee structure with different fees based on the risk taken by liquidity providers. |
| Liquidity Concentration | SushiSwap does not have this feature and has no plans to incorporate it into its platform. | Users can form larger swaps due to increased liquidity at a specific commercialism pair's expected price range. |
| Reward System For Newer Tokens | SushiSwap has a characteristic named “Onsen Program” which is a liquidity provision strategy for new tokens. | Uniswap does not provide any additional rewards for new tokens created on its platform. |
| Liquidity Mining | SushiSwap's liquidity mining is still operational. Liquidity providers earn governance tokens indefinitely by staking their tokens in liquidity pools. | As an incentive for liquidity providers, Uniswap once distributed some of its UNI tokens through liquidity mining. |
SushiSwap Wallets
SushiSwap is Ethereum software that can be interacted with via crypto wallets. Below is a list of some of the top crypto wallets that you can use to access SushiSwap services.
- Trust wallet
- Metamask
- Coinbase wallet
- YouHolder
How to Stake SUSHI
SushiSwap not only offers you the opportunity to earn $SUSHI and share in platform fees, but it also offers you the ability to earn xSUSHI tokens from your $SUSHI staked tokens.
xSUSHI holders earn 5% of all platform transaction fees from Sushi. All you need to get started are some $SUSHI tokens and Ethereum (ETH) to get started.
Step 1. Visit SushiSwap and click on the SushiSwap app, “Enter App.”
Step 2. Click on “Connect Wallet.”
Note: Make sure you have some Ethereum to cover gas fees.
Step 3. Ensure that you have $SUSHI tokens to stake in your wallet and click the Explore tab, then select the SushiBar option.
Step 4. Input the amount of $SUSHI tokens you wish to stake or click Max, then confirm staking.
Step 5. Approve the transaction in your wallet and you’re good to go!😃
SushiSwap review: Conclusion
SushiSwap is primarily designed for users who want a user-friendly decentralized exchange platform that provides lots of incentives for users to interact with and contribute liquidity to its pools.
It is run by a community and gives users a voice in the development and decision-making of the platform they support. If this appeals to you, then SushiSwap may be the platform you engage with and stick with.
The aspiration and commitment of the exchange’s core developers and community have also demonstrated that it is secure.
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