It also has unique Automated Market Maker smart contracts and has become one of the solid protocols on DeFi ecosystem. The primary goal behind this unique platform was to improve on UniSwap\u2019s, shortfalls and it has proven to be worth the effort.<\/p>\n
So, if this DeFi project is still a novelty to you, keep reading. You’ll find the numerous unique features and more information about the SushiSwap protocol below.<\/p>\n
Contents<\/p>
- 1<\/span> What is SushiSwap (SUSHI)?<\/a><\/li>
- 2<\/span> History of SushiSwap<\/a><\/li>
- 3<\/span> How to use SushiSwap<\/a><\/li>
- 4<\/span> Uses of SushiSwap<\/a><\/li>
- 5<\/span> Benefits of SushiSwap<\/a>
- 5.1<\/span> More affordable Fees<\/a><\/li>
- 5.2<\/span> Staking & Farming<\/a><\/li><\/ul><\/li>
- 6<\/span> What Makes SushiSwap Unique?<\/a>
- 6.1<\/span> What is Causing the Increase in Value of SushiSwap?<\/a><\/li><\/ul><\/li>
- 7<\/span> SushiSwap (SUSHI) Tokens in Circulation<\/a><\/li>
- 8<\/span> How to Buy and Store SUSHI<\/a><\/li>
- 9<\/span> How to Store Sushi?<\/a><\/li>
- 10<\/span> How to Sell SushiSwap?<\/a><\/li>
- 11<\/span> Choosing a SushiSwap Wallet<\/a><\/li>
- 12<\/span> SushiSwap Staking and Farming<\/a><\/li>
- 13<\/span> Conclusion<\/a><\/li><\/ul><\/div>\n
What is SushiSwap (SUSHI)?<\/span><\/h2>\n
SushiSwap is among the decentralized exchanges (DEXs) running on the Ethereum blockchain. It encourages its network users to participate more by offering good incentives such as revenue sharing mechanisms.<\/p>\n
The DeFi project introduced numerous mechanisms for more control to its community of users. SushiSwap works with its customized automated market maker (AMM) smart contracts and integrates many DeFi features.<\/p>\n
Buy SushiSwap with Our Top Broker<\/span><\/a><\/div>\nIts automated market maker uses smart contracts to facilitate automated trading between two crypto assets. The significance of the AMM on SushiSwap is that the platform will have no liquidity issues. It can utilize the liquidity pool mechanisms to obtain the much necessary liquidity on every DEX.<\/p>\n
History of SushiSwap<\/span><\/h2>\n
A pseudonymous developer, “Chef Nomi,” and two other developers, “OxMaki\u201d and \u201cSushiSwap,” became the founders of SushiSwap in August 2020. Apart from their Twitter handles, the available information about them is little.<\/p>\n
The founding team created the foundation of SushiSwap by copying the Uniswap open-source code. Impressively, the project got many users following its launch. By September 2020, Binance added the token on its platform.<\/p>\n
Within that same month, the SushiSwap creator Chef Nomi without notifying anyone cashed out one-quarter of the project’s developer funding pool. This was worth more than $13 million at that time. His action led to some minor hysteria and accusations of scam, but he later returned the fund back to the pool and apologized to investors.<\/p>\n
Shortly afterwards, the Chef handed over the project to\u00a0Sam Bankman-Fried, the CEO of derivatives exchange FTX and quantitative trading firm Alameda Research on September 6th<\/sup>. They migrated tokens of Uniswap to the new SushiSwap platform on September 9th<\/sup> same year.<\/p>\n
How to use SushiSwap<\/span><\/h2>\n
If you want to use SushiSwap, the first step is to acquire a few amounts of ETH. This is the first step, and to do it quickly, you must get it through fiat on-ramp. All you need to do is to register on a centralized exchange with support for fiat currency. Then provide the necessary details including a form of ID.<\/p>\n
After registering, add some funds to your account using fiat currency. Then, convert the fiat to ETH. With that and when done, you can use SushiSwap.<\/p>\n
The first step on the SushiSwap platform is to select a liquidity pool that may require a little research about crypto assets. SushiSwap doesn\u2019t mandate projects to pass through a verification process. So it is always safe to do the research personally to avoid fraudulent projects or rug pulls.<\/p>\n
After choosing the project of your choice, link the wallet that supports ERC-20 tokens by using the ‘link to wallet button on the SushiSwap screen. This action will guide you through the linking process.<\/p>\n
Once you\u2019ve linked the wallet, then add your assets to your preferred liquidity pool. After staking the tokens, you\u2019ll get SLP tokens as rewards. The value of your tokens increases with the liquidity pools, and you can even use them for yield farming.<\/p>\n
Uses of SushiSwap<\/span><\/h2>\n
SushiSwap facilitates the buying and selling of different kinds of cryptos between users. The user pays a swapping fee, 0.3%. From these fees, liquidity providers\u2019 take 0.25% while 0.05% will be given to SUSHI token holders.<\/p>\n
- \n
- Through SushiSwap, users swap crypto once they connect their wallets to the SushiSwap exchange.<\/li>\n
- SUSHI allows users to participate in protocol governance. They can easily post their proposals to the SushiSwap forum for others to discuss them and vote following the SushiSwap Snapshot voting approach.<\/li>\n
- Investors of SushiSwap liquidity pool get \u201cSushiSwap Liquidity Provider tokens\u201d (SLP). With this token, they can reclaim both their funds and any crypto fees they earned without issues.<\/li>\n
- Users also have the opportunity to contribute to trading pairs that are yet to be created. All they need to do is provide the crypto for the upcoming pools. By being the first providers of liquidity, they\u2019ll set the initial exchange ratio (price).<\/li>\n
- SushiSwap permits users to trade crypto without the control of a central operator administrator, like what happens in centralized exchanges.<\/li>\n
- People who have SUSHI make decisions concerning the SushiSwap protocol. Also, anyone can propose changes to the way SushiSwap operates as far as they have the native token.<\/li>\n<\/ul>\n
Benefits of SushiSwap<\/span><\/h2>\n
SushiSwap offers many benefits to DeFi users. It is a platform that facilitates tokens swapping and contribution to liquidity pools.<\/p>\n
Also, the platform offers risk-less mechanisms for earning passive income. Users also have the opportunity to stake SLP tokens for SUSHI rewards or SUSHI for xSUSHI rewards.<\/p>\n
Other benefits of SushiSwap includes:<\/p>\n
More affordable Fees<\/span><\/h3>\n
SushiSwap offers lower transaction fees than many centralized exchanges. SushiSwap users incur a 0.3% fee for joining any\u00a0liquidity pool. Also, after approving a token pool, users pay another small fee.<\/p>\n
Support<\/strong><\/p>\n
Since the lunch of SushiSwap, the platform has been garnering lots of support from the crypto market. Also, many DeFi platforms have endorsed SushiSwap, and even some big shot centralized exchanges have listed its native token, SUSHI.<\/p>\n
The strong backings from both the users and the crypto market helped the platform to grow faster.<\/p>\n
Passive Income<\/strong><\/p>\n
On SushiSwap, more percentage of the fees generated enters the coffers of its users. People who fund its liquidity pools get exorbitant rewards for their efforts. Moreover, people get double rewards from the SUSHI\/ETH liquidity pool.<\/p>\n
In the DeFi community, SushiSwap is recognized as the first Automated Market Maker that gives back its profits to the people who keep it operational.<\/p>\n
Governance<\/strong><\/p>\n
SushiSwap employs community-based governance to promote more participation and involvement. As such, the community participates in voting for every important decision surrounding network changes or upgrades.<\/p>\n
Also, the developers keep a certain percentage of newly issued SUSHI tokens to fund more of its development plans. Still, the SushiSwap community votes for the disbursement of the fund.<\/p>\n
Staking & Farming<\/span><\/h3>\n
SushiSwap supports both yield farming and staking. But many new investors choose to stake because the ROIs are higher; they don’t need to do any serious task. However, farming gives rewards and doesn’t require a user to provide liquidity to the network.<\/p>\n
Hence, SushiSwap remains their best platform as it gives the DeFi community access to those most popular features as staking & farming.<\/p>\n
What Makes SushiSwap Unique?<\/span><\/h2>\n
- \n
- The main innovation of SushiSwap was introducing the SUSHI token. Liquidity providers on SushiSwap get SUSHI tokens as rewards. The platform is different from Uniswap in this regard because the tokens qualify a holder to get a share of the transaction fees after they\u2019ve stopped providing liquidity.<\/li>\n
- SushiSwap doesn\u2019t use order books like most traditional DEX. Even without the order book, the Automated Market Maker does have liquidity issues. In certain aspects, SushiSwap shares some similarities with Uniswap. But it allows more community participation.<\/li>\n
- SushiSwap took care of the criticism against Uniswap regarding the venture capitalists who interfere on its platform. There were also some concerns about the lack of decentralization in the method of UniSwap\u2019s governance.<\/li>\n
- Sushiswap eliminated Uniswap\u2019s decentralization issues by equipping SUSHI holders with governance rights. The platform ensures that venture capitalists were left out entirely through its “fair launch” approach to token allocation.<\/li>\n<\/ul>\n
What is Causing the Increase in Value of SushiSwap?<\/span><\/h3>\n
The following factors can be poised to increase the value of SUSHI.<\/p>\n
- \n
- SUSHI allocates governance rights to its investors, thereby enabling them to fully participate in the platform’s development. It also offers perpetual rewards to its numerous investors as incentives for their participation.<\/li>\n
- There is room for any investor to introduce positive changes to the ecosystem through a proposal. But those who wish to vote in favor or against the proposal must hold a certain amount of SUSHI. Currently, voting contracts are non-binding on the platform. But users want to adopt the decentralized autonomous organization (DAO) for its governance. The implication will be that votes will become binding and executable by SushiSwap smart contracts.<\/li>\n
- SushiSwap price rate and market capitalization were not increased through scarcity. The platform wasn’t created with a max supply like other projects. As such, inflation doesn\u2019t affect the price of SUSHI.<\/li>\n
- SushiSwap manages the inflationary effects on its token by distributing 0.05% of its trading volume to the holders. But to that, it buys the SUSHI to pay holders rewards. This action increases the “buy pressure” and counteracts inflation. By that, maintaining SushiSwap price won\u2019t be a problem since the trading volume will be high enough.<\/li>\n
- Many of the changes happening on SUSHI are showing the high earning rewards for users in its future. For instance, holders voted last September 2020 to support “max supply” for the token.<\/li>\n
- These changes plus the possibility of upcoming improvements will affect the future earning possibility of the protocol itself. In the end, it could improve the demand, price and market cap of SUSHI.<\/li>\n<\/ul>\n
SushiSwap (SUSHI) Tokens in Circulation<\/span><\/h2>\n
SushiSwap (SUSHI) was at zero when it came into existence. But afterwards, miners started minting it at which took two weeks to be completed. This first set of SUSHI aimed at stimulating early users of the project. Afterward, miners used every other block number to create 100 SUSHI.<\/p>\n
A few months back in March, the number of SUSHI in circulation had reached 140 million, of which the total number of the token is 205 million. This number will continue to increase following the block rate of Ethereum.<\/p>\n
According to Glassnode estimates last year, the daily increase in SUSHI supply would be 650,000. This would lead to 326.6 million supply every year following the token’s launch and almost 600 million two years later.<\/p>\n
Image Credit: CoinMarketCap<\/a><\/p><\/div>\n
However, the community voted for a gradual reduction in SUSHI minted from each block until they reach 250 million SUSHI in 2023.<\/p>\n
How to Buy and Store SUSHI<\/span><\/h2>\n
SUSHI can be bought through Huobi Global<\/a>,\u00a0OKEx<\/a>,\u00a0CoinTiger<\/a>, or from any of these major exchange platforms;<\/p>\n
- \n
- Binance\u00a0\u2013\u00a0It is best for many countries globally, including UK, Australia, Singapore, and Canada. <\/strong><\/li>\n<\/ul>\n
However, you can’t buy SUSHI if you’re in the USA.<\/p>\n
- \n
- Gate.io\u00a0\u2013\u00a0This is the exchange where US residents can buy SUSHI.<\/li>\n<\/ul>\n
- Binance\u00a0\u2013\u00a0It is best for many countries globally, including UK, Australia, Singapore, and Canada. <\/strong><\/li>\n<\/ul>\n
- 7<\/span> SushiSwap (SUSHI) Tokens in Circulation<\/a><\/li>
- 5.2<\/span> Staking & Farming<\/a><\/li><\/ul><\/li>
- 2<\/span> History of SushiSwap<\/a><\/li>
![\"SushiSwap](\"https:\/\/deficoins.io\/wp-content\/uploads\/2021\/05\/SushiSwap-Review-1024x673.png)