The Sushiswap protocol realigns incentives for network participants by introducing revenue-sharing & community driven network effects to the popular AMM model.
Everyone can be a chef with SUSHI
SushiSwap is an automated market-making (AMM) decentralized exchange (DEX) currently on the Ethereum blockchain. We are soon expanding our offerings with the BentoBox lending platform.
We are a community-run project, governed by the community vote for all major changes to the protocol. Day-to-day operations, rebalancing of pools and ratios, business strategy, and overall development is ultimately decided on by our Sushi Chef 0xMaki.
While Uniswap is sharing its profits from its fees with liquidity providers, SushiSwap gives them a lot more. For every pair on the platform SushiSwap has its own reward SUSHI rate, and some of these rates climb to 100%.
So the steps here are simple:
-Select the pair you want to provide liquidity for
-Connect your wallet to SushiSwap
-Wait and receive rewards
The only problem here is the SUSHI issuance. Some people are concerned by the fact that SUSHI printing is endless and its supply continuously increases. However, it’s not a problem while the demand for these tokens is very high.
As the Decentralized Finance (or DeFi) space evolves, an increasing number of novel financial platforms continue to emerge. We’ve seen how things like flash loans and yield farming (or liquidity mining) can be leveraged by investors to make money with their money.
Uniswap has solidified its position as one of the core DeFi protocols. In spite of its decentralized ethos and heavy reliance on smart contracts, however, users don’t have much of a say when it comes to its development direction.
SushiSwap, a new entrant to the field, promised to change that. And over 1 billion worth of value locked into the protocol – only a few days after launch – suggests that many would be interested in this change.
What is SushiSwap?
Before we start, it’s worth mentioning that if you don’t know what Uniswap is and how it works, you’ll have a hard time understanding SushiSwap.
In short, Uniswap is a decentralized exchange protocol that works without an order book. Instead of an order book, it utilizes a model called automated market-making (AMM), where liquidity providers add funds to liquidity pools. Before you think of jumping in to provide liquidity to SushiSwap, we highly recommend that you read our Uniswap article to understand all the details.
SushiSwap is a fork of Uniswap with some key differences – most notably, the SUSHI token. The token has two functions at launch: entitling holders to governance rights and a portion of the fees paid to the protocol. In a simplified way, SUSHI holders “own” the protocol.
