What is SushiSwap (SUSHI)?
SUSHI is the token that powers the SushiSwap automated market maker (AMM). SushiSwap was initially launched in 2020 as a fork of the Uniswap AMM. Since Uniswap, the parent AMM, runs on the Ethereum blockchain, SUSHI is an ERC-20 token.
SushiSwap is known as a DeFi platform that offers a range of solutions in addition to the multi-chain AMM. Some of the well-known services available on the Sushi.com platform are BentoBox/Kashi lending, xSushi staking, and the Onsen Program. You can take a look at the SUSHI price statistics above.
Who is the Creator of SushiSwap?
SushiSwap was developed by the anonymous entity known as Chef Nomi. No biographical information is known about them. At its inception, in November 2020, the SushiSwap price was set at 1.19 USD.
In 2020, Chef Nomi withdrew 38,000 ETH from SushiSwap, leading to community outrage. Chef Nomi claimed that this was their deserved reward for developing the platform. The funds were later returned. Chef Nomi referred to the decision as a mistake and allowed the community to determine what the actual deserved amount is.
SushiSwap is now community-driven, although Sam Bankman-Fried holds the de facto ownership of the platform. Owning the SUSHI token allows users to directly participate in the SushiSwap platform governance.
The lowest token value was recorded in November 2020, following Chef Nomi’s withdrawal of the funds. During its first year in the market, the highest-recorded SUSHI price was over $23 in March 2021.
What are the SushiSwap Tokenomics?
Although it was not initially designed to have a hard cap, this decision was changed by the community’s decision. The supply of SUSHI is now capped at 250 million tokens. It is estimated that the hard cap will be reached by November 2023. No tokens were pre-mined prior to the 2020 launch.
Since the asset is deflationary, the expected market trend is that the SushiSwap price will start increasing once all assets are unlocked and in circulation. Due to burning and holding, the available supply in the market will decrease, driving up the asset's value.
With each transaction, 0.3% fees apply. Of this amount, 0.25% is allocated to those contributing to the liquidity pools, while the remaining 0.05% is divided between all SUSHI token holders.
Is SushiSwap Secure?
Like many tokens, SushiSwap is considered volatile due to market price changes. Furthermore, holders must cover transaction fees when they use the SUSHI token. If the token is traded on decentralized exchanges, users should be cautious of the common risks, such as rug pulls, phishing, and other scams.
The price of the SushiSwap token was strongly influenced by Chef Nomi’s withdrawal of funds in 2020. It has also bounced Therefore, it’s important to know that the SUSHI price is volatile and may change depending on market conditions or blockchain events.
