SushiSwap is a decentralized exchange (DEX) and automated market maker (AMM) that allows users to swap Ethereum-based tokens. The DEX was initially launched on Uniswap before migrating to its own decentralized facility in 2020. SushiSwap is available on various networks. Even though it was originally developed on Ethereum, SushiSwap employs a multi-chain approach. Thus, it runs on various chains. For example, SushiSwap (Fuse) runs on the Fuse network.
SushiSwap does not require any KYC compliance from the users. Also, SushiSwap does not have a list of restricted areas. However, it is committed to working with the authority to ensure users do not break the law. Therefore, some of its products may not be legally available in certain areas with restrictive laws. SushiSwap Fuse is available on a web app.
SushiSwap crypto exchange offers both spot trading and leveraged trading. Sushiswap spot trading is supported by its instant swap feature for various markets. SushiSwap margin trading allows users to buy SushiSwap on borrowed funds.
SushiSwap (Fuse) was introduced in 2022. It supports Wrapped Fuse (WFUSE), Wrapped Ethereum (WETH), and USD Coin (USDC). There are three SushiSwap trading pairs on SushiSwap (Fuse) at the time of writing, WFUSE/WETH, WFUSE/USDC, and USDC/WETH. The protocol plans to list more tokens and introduce more markets. Note that SushiSwap (Fuse) crypto price may be volatile.
SUSHI is the native token of the platform, which supports utility and governance functions on the SushiSwap cryptocurrency exchange. The token was released in September 2020.
SushiSwap's primary function is to mirror traditional exchange by facilitating buying and selling of digital assets between users. However, unlike conventional exchanges, SushiSwap does not require an intermediary order book for trading. Instead, it uses a decentralized trading method, AMM, which makes the entire process peer-to-peer. SushiSwap crypto exchange liquidity is supplied through liquidity pools.
SushiSwap charges a flat fee of 0.3% for swaps. 0.25% of the SushiSwap Fuse exchange fee goes to the liquidity providers (LPS) while the remaining 0.05% is distributed to SUSHI token holders. SushiSwap does not charge withdrawal or deposit fees. However, users may incur the network's gas fees when transferring funds.
SushiSwap offers a full suite of products. BentoBox Dapps allow users to deposit tokens and earn a decent annual yield (APY). The reward is generated by charging fees to users who take flash loans supported by BentoBox.
The protocol's core products include Keshi lending, a lending and margin trading platform that enables everyone to create a customized market for tokens. Another product is MISO, which provides projects with access to trading on the exchange through fixed-price or dutch auction options. BentoBox is a token vault that generates yield for deposited assets. Finally, MasterChef v2 is a liquidity provision program with over $1 billion as of the time of writing.
SushiSwap protocol products are supported by two contracts: MasterChef v1 (MCV1) and MasterChef v2 (MCV2). The former is the only contract with minting rights to SUSHI. MCV2, on the other hand, is an intermediary contract that is concluded between the reader contract and MCV1. All incentive mechanisms on the platform are based on MasterChef contracts.
The platform also offers crypto staking and farming. Farming enables users to earn rewards even without being liquidity providers. Staking users can also earn governance rights by staking SUSHI. Stakers also earn 0.05% of the SushiSwap Fuse crypto fees.
Moreover, the SushiSwap Fuse crypto exchange provides API services. APIs enable users to aggregate liquidity from other platforms and swap tokens at the best price.
Furthermore, SushiSwap also provides a permissionless token launch pad through its Minimum Initial SUSHI Offering (MISO). Lastly, the platform offers an NFT marketplace (Shoyu NFTs) where users can trade NFT assets.
About the Company
SushiSwap was originally founded by a pseudonymous developer Chef Nomi. Chef Nomi later handed off its management to two other pseudonymous developers, SushiSwap and 0xMaki. The two developers build the product and the business before transferring the ownership of the exchange to Sam Bankman-Fried. The company is headquartered in Japan.
The rise of SushiSwap began as a simple fork of Uniswap. The first innovation introduced by the developers was the issuance of the native token SUSHI in September 2020. SushiSwap became unique at the time of its launch as it offered both governance tokens and liquidity mining.
Initially, SushiSwap would allow users to stake Uniswap LP tokens on SushiSwap to earn SUSHI governance tokens. After about two weeks, the project creator Chef Nomi planned to redeem the same Uniswap LP tokens for assets that would be transferred to SushiSwap. This move was labeled a vampire attack. The migration of SushiSwap from Uniswap enabled the project to evolve into a large market. The high liquidity supported the high SushiSwap trade volume.
Initially, the project offered large incentives to users who moved liquidity from Uniswap to SushiSwap, leading to a spike in SushiSwap volume and liquidity.
On September 5, 2020, Chef Nomi swapped the development fund for 37,400 ETH, which was worth $14 million at the time. SushiSwap crypto price dropped by over 70% within one day. The event led to Chef Nomi transferring the private keys to the SushiSwap smart contract to FTX CEO Sam Bankman-Fried. On September 9, 2022. Bankman-Fried led the migration of $830 million from Uniswap to SushiSwap. On September 11, Chen Nomi returned the ETH that was drained from the development fund.
On November 30, 2020. Andrea Cronje, the founder of Yearn.finance, announced a planned merger of SushiSap with Yearn.
Though initially launched on Ethereum, SushiSwap has expanded to support multiple chains, one of which is Fuse. Fuse is a blockchain-based decentralized platform and technology that seeks to enable the widespread adoption of cryptocurrency payments and decentralized banking.
In July 2022, SushiSwap introduced the SushiXSwap update, a cross-chain DEX, which allows token swaps across multiple networks.
SushiSwap Fuse trade volume has been expanding as the protocol keeps growing and introducing more attractive products.
In September 2020, Quantstamp, a reputable security company audited SushiSwap, and the platform passed the security audit. The audit result didn’t reveal any critical issues on the platform. However, the specialists identified 10 security flaws, within the software. The issues were not fatal and were easily corrected. On September 16, 2020, SushiSwap MISO Launchpad was attacked by hackers who stole $3 million in ETH.