SushiSwap is a decentralized trading platform that allows cryptocurrency traders to transact and make money without involving a central administrator. It has emerged as one of the most popular platforms partly due to the high demand for decentralized finance (DeFi).
Holders of the native digital currency SUSHI gain the full right to make decisions relating to its trade activities. For instance, you can propose elaborate operational changes and vote on proposals that others submit.
Chef Nomi and 0xMaki, who are anonymous developers, founded SushiSwap. In the beginning, Nomi created the protocol and published it on Medium. The online details thrilled 0xMaki, who joined SushiSwap after a short while developing the crypto trading platform. After lengthy deliberations between these two first participants, 0xMaki became the project's cofounder. However, at the time of its release, about five developers might have been working on the project.
Many people want to know whether an accredited team audited SushiSwap before its release. We have established that the first participants didn't engage any auditor to handle the work. However, we trust the platform since Chef Nomi publicly invited some of the most reputable global companies like Consensys and Quanstamp to audit its code.
As a testament to the project's viability, it had accumulated more than one billion US dollars in locked funds by the third week after its launch. Moreover, by this time, it had temporarily become the largest DeFi protocol, surpassing Aave. Its approximated annual interest rate was more than 2,500%.
However, in a twist of events, Chef later liquidated lots of SUSHI tokens, worth more than 14 million USD, without giving any notice. He defended his actions on social media, which angered many traders. The success of the platform began to decline immediately.
Nomi then stepped away from the organization due to public pressure, and Sam Bankman-Fried took over from him. What's more, the SushiSwap community voted to choose other managers. Chef Nomi subsequently returned the stolen development fund, putting SushiSwap on a steady success path under Sam's leadership.
SUSHI tokens are some of the essential features of this De-Fi platform responsible for its fast growth across the world. These are rewards that users get for liquidity mining.
For individuals to participate in the decentralized financial system's governance, they have to hold these tokens. SUSHI holders are also entitled to a substantial share of the fees that traders pay.
The core function of SushiSwap is to facilitate the buying and selling of digital currencies between users in a manner that mimics the traditional exchange. However, the platform offers more than this, as it doesn't rely on a central entity's support.
The platform also uses smart contracts. So, other than the above, users can lock the cryptocurrencies on the app where traders can access them.
One important thing to note is that individuals who trade against locked crypto assets pay a small fee. As we said, this is the amount that SushiSwap proportionally distributes to all liquidity providers. The system shares these assets based on each trader's contribution to the pool.
How do liquidity providers contribute to SushiSwap pools? They connect their ETH wallets to the platform's farming software and lock two digital assets into a smart contract. Remember, the USDT/ETH liquidity pool has equal shares of ETH and USDT deposits. So, as a buyer, you can swap your tokens within the protocol whenever you want by following the protocol's rules. After that, the smart contract takes the tokens and sends an equivalent amount back. This way, it ensures that the token's price remains constant.
The providers get their protocol fees rewards and a portion of the daily, newly minted SUSHI in exchange for maintaining the pools' liquidity.
The contract is flexible enough to meet the diverse needs of users. The platform allows providers to reclaim their investments at any time. When you make the request, you also get the digital currency earned from farming.
This feature offers traders an opportunity to stake their SUSHI to earn more tokens. If you would like to know where these funds come from, recall that we mentioned something briefly about 0.05% trading fee to effect earlier. SushiSwap calculates 0.05% of the platform's trading fee and adds all of them to the Sushi Bar pool.
SushiSwap can call the rewards contract at least once per day. This effectively liquidates the tokens stored in the bar pool and buys SUSHI tokens on the exchange, making SushiSwap an invaluable part of this DeFi platform.
The SushiSwap menu contains the yield farming tools that existed in the protocol's initial release. Nonetheless, unlike the Uniswap LP tokens, users stake SushiSwap tokens to earn interest.
If you check the platform now, you will discover that Sushi Party is the highest yield 'Menu' item. It grants users 100% + APY on all the SLP tokens that they stake. It is available on Swapzone.io
If you want to exchange on this user-friendly platform, here are the simple steps to follow:
SushiSwap has the single goal of becoming the best DeFi platform. The platform is currently known for having some of the most attractive features, including the lack of KYK, numerous opportunities to earn SUSHI tokens, and more. However, like other exchanges, it needs to continually improve user experience by partnering with other viable projects, adding new advanced features, protecting development funds from mismanagement, and the likes.
However, we appreciate SushiSwap's decision to partner with Swapzone.io. Users can now access it on the exchange aggregator more conveniently by following the above steps.