Among the various DeFi protocols, Uniswap has been the most successful one for swapping multiple tokens of the Ethereum platform. To make it more accessible for everyone, a team of passionate developers made the code open-source so that anyone can fork it, which gave rise to SushiSwap.
What Is Sushiswap?
SushiSwap is the fork of the decentralized exchange protocol UniSwap, which utilizes AMM (automated market-maker) where the liquidity providers can add funds to the various liquidity exchange pools. In other words, AMMs are decentralized exchanges that use smart contracts for creating markets for any pair of tokens. The SushiSwap exchange focuses on diversifying the AMM market by adding additional features (like increased rewards for network participants through its native token SUSHI) that were not previously present on the Uniswap protocol.
On the SushiSwap platform, users can contribute liquidity to the exchange pool, and as a reward, they get the SUSHI tokens. This process is similar to Uniswap, but unlike on UniSwap, SUSHI tokens allow users to keep some benefits. A bonus scheme has also been created to enable users to build their liquidity on Sushiswap. In UniSwap, Vendors earn trading payments only if their funds are in the UniSwap exchange pool, thereby dominating any passive income that comes on its way.
The SUSHI tokens entitle owners the governance rights on the SushiSwap platform, besides receiving a share of the payments (a portion of the exchange fees paid by traders to the SushiSwap protocol). SUSHI token holders also have the right to vote and submit a SIP (Sushi Swap Improvement Proposal) platform.
Founders of the SushiSwap exchange
SushiSwap was launched in 2020 by a small team of passionate developers led by a pseudonymous entity in the name of Chef Nomi. The other participants include 0xMaki, more popularly known as ‘Maki.’ Both these co-founders handle SushiSushiSwap’s, business operations, and product development for the exchange. De-facto ownership of the exchange was also passed recently to Sam Bankman-Fried, the CEO of FTX (derivatives exchange) and Alameda Research (a quantitative trading startup). Bankman-Fried is also a well-known cryptocurrency market commentator appearing regularly in media interviews.
History of SUSHI Price Growth
The SUSHI token started with a price of USD 3.44 when it was first released on August 28, 2020. Following that, both the market cap and the token cost skyrocketed to USD 10.19 by September 1. Later, there was a gradual fall in the price of SUSHI for several months till mid-November, and it finished at USD 2.687 by the end of 2020.
On January 9, again, the price fell from USD 4.67 to USD 3.40 but quickly rose again to USD 7.37 by January 16. Since then, the coin has been growing steadily. Even the many Cryptocurrency predictions believed to be a great future for SUSHI token.
Experts Talk on Sushiswap (SUSHI): Will Its Price Go Up?
Experts advise against investing in SUSHI tokens now since the coin price is predicted to rise in the long run. By the end of 2021, the price can fall to $5.85 or shoot to $24.15. Check out SUSHI price prediction to get more details on SUSHI token.
Benefits of Buying SUSHI
The SUSHI token serves various purposes on the SushiSwap ecosystem; therefore, users are always eager to buy SUSHI; the more significant the SUSHI tokens they hold, the more voting rights they will possess.
Additional perks
SUSHI token holders are paid a good portion of the trading fees paid by traders to the SushiSwap exchange. Besides the platform’s liquidity, providers are also awarded free SUSHI tokens for contributing to the platform.
Support from leading exchanges
Since the platform’s launch, it has been getting support from leading crypto exchanges like Binance, Huobi, etc., that are contributing to the platform’s clarity.
Fair platform
The platform is decentralized and community-based that offers a fair platform to yield farmers and crypto traders.
Conclusion
Thus, SushiSwap has evolved as a community-friendly and advanced Uniswap. Unlike most traditional exchanges that employ market makers, SushiSwap is community-oriented, where users themselves provide the liquidity, and in return, they get rewarded by SUSHI tokens. The token holders, in turn, are entitled to a portion of the trading fees and exercise voting rights; thus, they are the market makers.