SushiSwap is the decentralized exchange Uniswap with several new features added. It was created by forking Uniswap. While UNI is used as token in Uniswap, Sushi Token is used in SushiSwap. At the same time, the founders of SushiSwap describe this new protocol as an evolution of Uniswap. It was founded in 2020 by anonymous Chef Nomi and 0xMaki.
The points where SushiSwap and Uniswap differ are as follows:
At UniSwap, liquidity providers receive a share of the transaction fee in the pool when they actively offer such liquidity. When you trade with SushiSwap, you can continue to earn Sushi Tokens on a continuous basis after providing a certain amount of liquidity.
When UniSwap users withdraw their share of the pool, they will not receive the passive income from it. However, even if you decide to withdraw from liquidity at SushiSwap, you will continue to earn a certain amount of the protocol fee accumulated under Sushi.
The most striking stage is the fact that as the interest in the Uniswap protocol increases, the income of the first participating stakeholders decreases. The increase in the number of stakeholders, especially those who invest heavily, triggers this situation. In SushiSwap, on the other hand, the first stakeholders are prioritized.
The general features of SushiSwap are as follows:
This decentralized protocol is described as enhanced community friendliness. In contrast to traditional exchanges, it is a DEX that can be liquidated by users, and each of the users is a market maker.
SushiSwap uses a mechanism called automated marketplace generation (AMM). Accordingly, SushiSwap users can leverage smart contracts to create and manage pools of token liquidity that they can use to trade crypto assets.
‘Know your customer procedures’ are not applicable under the widely used SushiSwap platform. In this way, everyone can trade comfortably and contribute to the liquidity pool. However, the confirmation mechanism is not used to make transactions on the platform. Thus, a large number of users can transact more quickly and practically without confirmation.
When contributing to the liquidity pool on the platform, Sushi Tokens are earned in return. In this way, it becomes possible to earn rewards while investing. According to the statements made, approximately ¼ of the Sushi Token is transferred to the users. Any user has the right to convert this token to Ethereum later.
Sushi Token Features
Sushi Token, which is extremely easy to use, can be connected to the Ethereum wallet on the home page, and thus, transactions can be made immediately. Thanks to the easy initialization process, users can easily transfer their coins to the liquidity pool. The pool to be used for this must be carefully selected. Because the annual return of each pool differs from each other.
Sushi Token, which provides rewards for liquidity mining, refunds part of the fees paid by investors for the protocol and allows users to participate in the management of the platform. Here token holders have the right to submit improvement offers.
Difference bBetween Sushi Token and UNI Token
The most important difference between Sushi Token and UNI Token is due to tokenomy. The main purpose of SushiSwap creator Chef Nomi forking Uniswap was to introduce the SUSHI token as an additional reward for liquidity providers. So in SushiSwap everything works exactly as in Uniswap but there are still some differences.
SushiSwap rewards liquidity providers with 0.25% of pool fees + 0.05% paid to SUSHI token holders. Uniswap closes the UNI token harvest period, while SUSHI harvesting (yield farming) is alive and well. Some pools have rewards of up to 80% annualized rate of return (APY).
SushiSwap and Uniswap offer very different user interface experiences. Instead of Uniswap’s ultra-modern app page, SushiSwap uses a page design that resembles a Japanese restaurant menu, with options such as “Onsen Menu” and “Omakase”.
Visits: 128
