SushiSwap

31

SushiSwap (SUSHI) is an example of an automated market maker (AMM). An increasingly popular tool among cryptocurrency users, AMMs are decentralized exchanges which use smart contracts to create markets for any given pair of tokens.

SushiSwap launched in September 2020 as a fork of Uniswap, the AMM which has become synonymous with the decentralized finance (DeFi) movement and associated trading boom in DeFi tokens.

SushiSwap aims to diversify the AMM market and also add additional features not previously present on Uniswap, such as increased rewards for network participants via its in-house token, SUSHI.

Features of SushiSwap

  • Rewards from transaction fees
  • Multi-chain AMM
  • Active developers
  • Security audits
  • Fast transaction
  • Secure network

Advantages of SushiSwap

  • SushiSwap has received strong endorsements from multiple DeFi projects. Also, some of the largest centralised exchanges in the world added the platform’s token which is Sushi, days after it went live.
  • Main advantages to SushiSwap are the ability to yield farm and earn a high yearly interest rate, lend and borrow assets against collateral with either interest received or a small amount of interest owed
  • The biggest benefits os SushiSwap is that the majority of fees got paid back to users
  • Trading fees are more affordable than some centralised exchanges

Disadvantages of SushiSwap

  • The major disadvantage to SushiSwap at this point are impermanent loss
  • The exchange is relatively new to the market so it doesn’t have a long history or demonstrable track record
  • SushiSwap wasn’t independently audited before its release, though the platform is relatively secure with no reported hacking scandals

Conclusion
Sushiswap is becoming popular every day because of its unique features and facilities for investors. The rewards and the token distribution are very lucrative. The safety and security of the platform add to the benefit of the liquidity providers. SushiSwap has certainly made waves in the DeFi sector, quickly overtaking many other more established DeFi projects in terms of total value locked. And with new products on the horizon such as lending and limit orders, SushiSwap’s meteoric rise could be far from over.

Comments are closed.