Sushiswap Review 2023
Making Crypto Simple
SushiSwap is an Ethereum-based automated market maker (AMM) developed using the same open-source technology as Uniswap.
Uniswap’s automated market maker protocol (AMM), created to solve the liquidity problem of decentralized exchanges (DEXs), is also associated with the decentralized finance (DeFi) initiative and the subsequent trading frenzy of DeFi tokens.
Similarly, SushiSwap blends multiple decentralized markets and mechanisms rather than restricting itself to a single approach to solving the liquidity problem.
In this review, we’ll go over all of the major features of this innovative trading platform and uncover the way the SushiSwap developers attempted to attract more traders to DEXs.
About the Sushiswap Exchange
Chef Nomi and 0xMaki, the enigmatic creators and key developers of SushiSwap, launched this decentralized crypto exchange in 2010.
This cryptocurrency platform with an appetizing food-moniker was created to alleviate the liquidity problem of decentralized exchanges and promote more inventive DeFi instruments for passive earning in the crypto sphere.
SushiSwap is a clone of Uniswap’s open-source technology, one of the most prominent Ethereum-based DEXs that inspired platforms like PancakeSwap and 1Inch.
By design, SushiSwap works with AMMs and smart contracts. The financial services and products on this platform are developed to make it possible for the SUSHI token holders to run the platform in a decentralized way by voting on its structural development.
However, the core team of the platform’s master sushi chefs, labelled as the Multisigs, has the final word on adding new features to SushiSwap.
How to Start Trading on SushiSwap
On SushiSwap, crypto investors trade against smart contracts, i.e. liquidity pools, instead of the usual peer-to-peer (P2P) trading practice of the DEXs. To start trading on SushiSwap, you won’t have to go through the KYC procedure to verify your identity or account. All you need is to connect your wallet to the platform and start performing your crypto strategy.
The platform requires users to pay a minor service charge in ETH before they gain admission to any of SushiSwap’s liquidity pools, so you’ll need to link an Ethereum wallet (such as MetaMask, Wallet Connect, or Portis Wallet).
If you don’t own ETH, you’ll have to locate a beginner-friendly CEX exchange that permits swapping Ether for your preferred fiat currency and then move the freshly purchased crypto to the Ethereum wallet connected to SushiSwap.
The Sushi Token (SUSHI)
SUSHI is a decentralized governance token distributed among the SushiSwap crypto traders who use the staking option. The traders who provide liquidity to the platform’s pool also receive this token as a reward for their contributions.
To facilitate the trading of a vast number of crypto assets, SushiSwap operates a decentralized marketplace where users may buy and sell cryptocurrencies. The exchange is based on the Ethereum blockchain and uses the ERC20 token standard.
SushiSwap offers trading of over 430 different cryptocurrencies and 520 different trading pairs. Ether (ETH), Bitcoin (BTC), Wrapped Bitcoin (WBTC), and other popular cryptocurrencies are all featured on this cryptocurrency exchange, as are Binance USD (BUSD), Adventure Gold (AGLD), Solana (SOL) and a vast number of ERC-20 tokens.
On SushiSwap, you can choose from many different options for making payments. These include but are not limited to bank transfers, crypto deposits, wire transfer purchases, TransferWise, credit cards/debit cards, and PayPal, to name just a few.
Trading Fees and Limits
On SushiSwap, there’s a 0.30% fee for limit order makers and limit order takers. On the other side of the token, there is no cost levied for withdrawals.
Moreover, SushiSwap is a platform that has introduced a reward fee. To be more precise, liquidity providers earn a fee of 0.25% on all deals in accordance with the distribution of the pooled assets.
In comparison, SUSHI token holders are granted a fee of 0.05% of the total trading volume. These fees are then deposited and accrued in real-time to the liquidity pool, where you can reclaim them by harvesting your liquidity balance.
The network also charges a small gas fee to connect your Ethereum wallet to the SushiSwap platform.
SushiSwap’s primary products, which will be covered in this section, encompass many creative financial instruments, such as decentralized trading platforms, crypto lending and borrowing market, yield tools, and staking products – all wrapped in the creative theme of a Sushi restaurant.
This crypto trading platform also serves as a crypto exchange where traders can lend, borrow, swap, or stake their coins without relying on third parties. SushiSwap users can exchange ERC20 tokens via automated liquidity pools.
Liquidity Providers (LPs) that deposit their LP tokens in SushiSwap Pools provide liquidity to the exchange. The LPs earn SushiSwap Liquidity Provider tokens (or SLP tokens) for their contributions to the platform’s liquidity.
The Sushi Bar
The Sushi Bar and the swapping contract are the two principal features of the SushiSwap platform. Users receive incentives for providing liquidity by depositing their tokens at the Sushi Bar. Using an Ethereum smart contract, traders can swap their coins with each other without a need for an intermediary.
The BentoBox (Yield Farming Platform)
Bento’s uniqueness is in its capability to monitor the trader’s deposits through artificial balance, which is employed to compensate for the idle assets in the vault. In contrast, the same tokens deposited on the trader’s balance are concurrently deployed in the trading strategies.
Namely, the BentoBox tool functions as a safe deposit box for tokens. You can use the saved tokens for instant loans or trading strategies. Coins held in this vault will produce a dividend for token holders.
More importantly, there is no risk to the funds you invest with the BentoBox. The vault employs low-risk farming tactics like investing tokens on Compound for lending interest or dishing out $SUSHI at the Sushi Bar to make extra $SUSHI.
Staking SushiSwap tokens to earn rewards? Count us in! With the xSUSHI staking option, you can take advantage of the SUSHI tokens you plan on holding for some time and get additional SUSHI to increase your balance.
Even if your SUSHI tokens are idle, you can still use them to earn $SUSHI tokens from your holdings. Anyone who owns some $SUSHI is entitled to 5% of all platform transaction fees from Sushi and Shyu, regardless of whether or not they own any other platform tokens or liquidity pairings.
With just a few $SUSHI tokens and Ethereum (ETH), you can begin reaping profits from your rewards and make an average of 4% APY interest.
KASHI Lending and Leverage
SushiSwap is known in part for its KASHI lending service, one of the platform’s specialties. This service provides individual lending crypto markets that reduce the amount of volatility generated by the cryptocurrency market.
In addition, the investors on SushiSwap have the opportunity to engage in leveraged trades, which come with infinitely adjustable and attractive pricing.
When it comes to lending, every user of the platform can make loans of their digital assets to other traders on the platform at an interest rate predetermined by the platform’s algorithm itself. The lenders of digital assets earn cash rewards in exchange.
Is SushiSwap Safe to Use?
Decentralized exchanges based on AMM and open-source blockchains allow full transparency and accountability. On the other hand, AMM algorithms employ fixed cryptocurrency values without the concurrence of the vendors and purchasers, which can be risky in some instances.
Theoretically, malicious hackers might drain the related pool of all deposited resources by rigging the price of cryptos, for example.
One way or another, SushiSwap has never experienced such a cyberattack so far. Moreover, the platform is built on the Ethereum blockchain, one of the safest networks in the crypto sphere.
Additionally, SushiSwap sports the two-factor authentication protocol (2FA) to provide an additional layer of protection for the personal data of the traders and their payment details against scams.
For any issues or questions regarding the platform’s features, you can contact SushiSwap’s customer support team through email or the exchange’s social media channels. You can visit the busy SushiSwap community on Discord by going directly to the platform’s dashboard and clicking on the “Discord” tab.
The SushiSwap Pros and Cons
In sum, these are the advantages and disadvantages of using this platform:
- Has a user-friendly cryptocurrency trading platform;
- Offers over 100 ERC20 trading pairs;
- Provides a wide variety of financial tools for earning passive income and an NFT market.
- Beginners in crypto trading may find some of the financial instruments challenging to comprehend;
- SushiSwap has expensive gas fees, a drawback that all Ethereum-based AMMs have;
- AMM protocols may impose a risk of a malicious attack on the liquidity pools.
The Bottom Line
SushiSwap is a platform designed as an attractive and hugely entertaining crypto ecosystem that is prepared to fulfill the trading taste of all crypto investors who value privacy and innovativeness. This exchange serves all sorts of original financial delicacies that enable users to enrich their portfolios and wallets through fun and creative investment tools.
This innovative exchange tries to focus less on the conventional order book and more on the automated aspect of the trading. On SushiSwap, you can combine two assets and trade against them. The price of the contract is set by a ratio that takes into account the value of each currency.
And when you get all of the financial instruments offered on SushiSwap wrapped up in an imaginative theme and served with minimal trading costs, we feel that the ultimate trading experience is guaranteed.
Frequently Asked Questions
SushiSwap is essentially a Uniswap dApp knockoff. However, what makes them different is the way these two exchanges employ their governance tokens.
Also, SushiSwap executed the vampire attack and stole Uniswap’s clients by delivering a wider choice of entertaining and cost-effective financial instruments, thus taking advantage of Uniswap’s reluctance to focus on their offerings rather than their brand name.
ETH, LINK, AAVE, UNI, SUSHI, and MATIC are the only ERC20 tokens supported by Bitbuy. Hence, you must input ERC20 when sending Ethereum-based coins to your Bitbuy account from an exchange or wallet that supports BEP2 and BEP20 transactions (such as Binance, Coinbase, or Trust Wallet) to receive your payments.