Basic information about SushiSwap

What is SushiSwap?

It is a decentralized cryptocurrency token exchange (DEX) on the Ethereum blockchain. It uses the base of another popular decentralized exchange – UniSwap.

What is the difference between UniSwap and SushiSwap?

They differ in the amount of remuneration for liquidity pools, the number of DEX networks and possible trading methods.

What are the advantages of SushiSwap?

The pros are: a large set of trading methods, more than 16 blockchains in the network and no identification.

What are the cons of SushiSwap?

The main disadvantage is the scandals surrounding the cryptocurrency and security issues. You can also add to this list a lower percentage to liquidity providers compared to UniSwap.

SushiSwap is a fork of the Uniswap projec

SushiSwap is considered a fork of the Uniswap project by its architecture. It is also based on Ethereum blockchain, which allows trading of ERC20 tokens via smart contracts. The difference between SushiSwap and its parent exchange is the ability to borrow or invest in cryptocurrencies.

SushiSwap is based on a decentralized exchange (DEX). It operates on the principle of automatic market maker (AMM), through smart contracts and user-funded liquidity pools. They receive liquidity provider tokens – SLPs – for filling the pools.

To get SLP, you have to freeze ERC20 tokens on the exchange. The more tokens frozen, the more SLP the user gets and the higher his fee will be.

Providers get remuneration in the form of SUSHI tokens for providing liquidity. The amount of SUSHI is defined as 0.25% of the commission for all transactions, proportional to the amount of SLPs held. SUSHIs are the backbone of the SushiSwap economy. They are traded on almost every platform that supports ERC20. The platform rewards SUSHI holders: gives access to passive income and other company tools.
SushiSwap financial tools
In addition to exchanging tokens, SushiSwap offers a wide range of financial tools: lending, stacking and lending.

To use all the features of SushiSwap you need to connect your cryptocurrency wallet to the exchange

Once the wallet is connected, you will have access to all the features of SushiSwap. They are several decentralized applications (dApps) united by one cryptocurrency ecosystem. Here are the main ones:

  • SushiSwap exchanger;
  • Kashi lending and lending marketplace;
  • SushiBar stacking and pharming.

Let’s take a closer look at each tool of SushiSwap exchange.

SushiSwap exchanger

Cryptocurrency trading takes place in the Swap section. In fact, this is a standard exchanger, but about 1500 cryptocurrency pairs are traded here – without quotations and exchange candlesticks. You can further customize the transaction: set the commission, transaction processing time and enable the Expert Advisor mode with high slippage.

Income instruments of SushiSwap

In the “Yield” section there is a service for crypto-farming. The user puts tokens at the disposal of the farm and receives passive income. Basically, the farm’s profit comes from lending tokens or earning from liquidity supplies.

SushiSwap is both an exchange and a decentralized community, where decisions on platform development are made collectively. Any SUSHI holder can participate in voting. The user can also freeze SUSHI in SushiBar by giving up the right to vote. He will then receive xSUSHI tokens, which will generate twice as much revenue.

Decentralized Kashi Lending Marketplace

The “Lend” section is dedicated to lending. This process is similar to bank lending. A user borrows cryptocurrency, and after some time returns the amount with interest to another user. The main features of such a loan: anonymity, unaccountability and speed of transaction approval.

The user can take out a loan or create his own credit offer. Security of transactions and security of currency is guaranteed by SushiSwap network.

SushiSwap’s architecture allows each loan market to be isolated. A separate liquidity pool, BentoBox, is created for this purpose. The increased risks of a single credit offer have no effect on the financial vulnerability of the entire platform.

Conclusion

SushiSwap is a development of the Uniswap exchange with a modified SUSHI economy. The platform uses DeFi’s investment tools and motivates users to hold SUSHI tokens, generating additional profits. This makes the project attractive to cryptocurrency users. According to CoinGecko, SushiSwap is among the top 10 decentralized exchanges in terms of daily trading volume.