In this article, we will introduce and review the Sushi Swap and SUSHI digital currency project, one of the latest projects in the field of DeFi (decentralized financial systems) and liquidity pool platforms.
In this platform, people can add their tokens to cash pools and, in return, receive sushi tokens and other tokens as a reward and thus make a profit. In the following, we will discuss how to do this process and exchange in a decentralized SushiSwap exchange. We will tell you that everyone can make a profit with this process. If you are interested in knowing such topics, follow the contents of this article to the end.
Sushi Swap was created by a person nicknamed Chef Nomi. The project attracted much attention around August 28, 2020, when users started talking on Twitter about the possibility of making more profit by transferring Uniswap liquidity to a forked platform.
This liquidity caused liquidity to flow from UniSwap to this new platform. After launching Sushi Swap in September (September 1999), the exchange had only three liquidity pools: SUSHI / ETH, USDC / ETH, and USDT / ETH.
Initially, the platform was able to attract high liquidity only by offering the main features of DeFi earlier than Uni Swap. Although other exchanges failed to do so, the governance model introduced by Sushi Swap, along with sushi tokens and crypto, brought this success to the platform.
During the first two weeks of commissioning, liquidity suppliers, or LPs, received 1,000 sushi tokens per block.
Eventually, traders began farming and cultivating profits in pools with low fees. Sushi Swap received a 0.25% fee compared to the 0.3% ion swap fee. However, the main incentive for users to provide liquidity in the platform’s pools was the SUSHI currency itself. All farmers also received 0.05% more bonuses in sushi tokens.
Just two weeks later, the project fell into the hands of its creator, Chef Nomi, and news of the rumors spread.
. At the time, Chef Nomi was selling $ 14 million in assets locked in the Sushi Swap Development Fund. Well-known developers later replaced him in the Blockchain. These people have been working quietly on this project ever since.
What is sushiswap?
SushiSwap is software that runs on the Ethereum platform and seeks to encourage a network of users to set up a platform where users can buy and sell crypto assets.
SushiSwap uses a set of liquidity pools to achieve this goal. Users lock their assets in smart contracts and traders, then buy and sell cryptocurrencies from those pools and swap one Token to another.
It means that decisions about SushiSwap software are made by its original digital currency holder, SUSHI. Anyone who owns an asset can make changes to how it works and vote on suggestions made by other users.
SushiSwap is a decentralized exchange called Automated Marketplace (AMM). This allows users to trade digital currency tokens, but there is no central reference for managing transactions. Instead, SushiSwap automatically sets prices with mathematical formulas and processes transactions using smart contracts.
How does SushiSwap work?
As mentioned, SushiSwap is an automated market maker (AMM) protocol that operates as a decentralized exchange. There is no centralized order book or reference. Smart contracts in liquidity pools process digital currency transactions at SushiSwap.
Liquidity Pool is where SushiSwap users become liquidity providers (LPs) by locking in their encrypted assets. Anyone can contribute cash to SushiSwap and earn rewards commensurate with their share of the pool. This is done by depositing the equivalent of two tokens in the pool.
Each pool works like a marketplace, where other users can come and buy tokens.
In SushiSwap, you can swap ERC-20 tokens just like any other DEX protocol. For example, you can exchange stable currencies such as USDT and BUSD to digital currencies such as Bitcoin (BTC) and Ether (ETH). There are also various sushi-themed activities for you to earn passively.
Advantages of SushiSwap
- There is no KYC (Know Your Customer) policy.
It means that anyone can trade and participate in liquidity pools. This platform is unlicensed, which means that anyone can contribute millions of dollars without asking permission.
- You can get tokens from sushi swap.
SUSHI is the main symbol of sushi swap. When you contribute to the cash pool, you get sushi tokens. You can exchange sushi with ETH.
- Swap sushi model.
0.25% goes directly to active liquidity providers, and 0.05% turns into sushi and rewards sushi holders.