As the world of DeFi evolves, Decentralized Exchange (DEX) allows users to trade their tokens directly with others without any third party or intermediary. Since the nature of crypto is transparent and decentralized, it is easy to make a copy out of an existing project. However, this type of open market leads to fair competition between DeFi startups.
In this article, we will discuss Sushi and its SUSHI token which is rapidly becoming popular in the crypto space.
- What is Sushi (SUSHI)? How does it work?
- Specific details about the SUSHI token, including its up-to-date price, key metrics, distribution, and use cases.
- How to get and store SUSHI tokens.
- Sushi roadmap and updates & details about Sushi’s team, investors, and partners.
What is SushiSwap?
Launched in August 2020, Sushi is an Automated Market-Making (AMM) protocol on Ethereum that was controversially forked from Uniswap with several key changes. SushiSwap is a DEX integrated with Sushi protocol that uses Smart Contracts. And in Q2 2021, the total value locked of the Sushi protocol is about $4 billion dollars, which makes Sushi ranked just behind Uniswap in terms of TVL.
SushiSwap is focusing on developing new features which benefit every customer. Especially, SUSHI token, which will be discussed later in this article, is probably the key to competing against Uniswap. In short, its ultimate goal is to dethrone Uniswap to become the most popular Ethereum-based DEX.
How does SushiSwap work?
In short, SushiSwap is an Automated Market-Maker (AMM) that uses the mathematical formula x*y=k to automatically balance the quantity of two underlying tokens in the pool. In that case, there is no need for any intermediary or third party to execute the transaction, traders only have to pay transaction fees to Liquidity Providers.
Even though Sushi is based on Uniswap’s code, it has added many innovative features to its system from time to time. Sushi aims to attract Uniswap users who provide liquidity by lending their tokens.
Therefore, Chef Nomi, the Sushi creator, has provided a program so that there are reasonable incentives to get Uniswap users to switch to SushiSwap exchange. SushiSwap gives holders control of the Sushi protocol as well as pays them rewards for staking tokens to liquidity pools.
After Chef Nomi decided to withdraw from SushiSwap, Sam Bankman-Fried, head of the FTX CEX trading platform, took over the Sushi project. And then he gave the control of Sushi to multiple community members in order to make SushiSwap decentralized.
Bigger than a DEX, Sushi is expanding at a skyrocketing pace in crypto, creating a complete DeFi ecosystem. To realize the dream,
What is SUSHI token?
The SUSHI token is an ERC-20 token built on the Ethereum blockchain that is mainly used for staking and earning rewards. With Uniswap, 0.3% of all transaction fees in pools is distributed: 0.25% to LPs and the rest of 0.05% to xSUSHI holders.
Detailed information about SUSHI token
SUSHI Key Metrics
- Token Name: SUSHI Token.
- Ticker: SUSHI.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x6b3595068778dd592e39a122f4f5a5cf09c90fe2
- Token type: Utility token.
- Total Supply: Unlimited.
- Circulating Supply: 192,789,256 SUSHI.
SUSHI Token Allocation
At present, SUSHI is distributed through Liquidity Mining (Yield Farming). That means when supplying liquidity to Uniswap pools, users can earn SUSHI tokens as mining rewards.
- From Ethereum block 10,750,000, by providing liquidity to specific Uniswap pools, users can deposit Uni tokens to earn SUSHI. The rewards lasted 100,000 blocks (roughly 2 weeks)
- After that, 4 million SUSHI tokens are weekly distributed in liquidity pools on SushiSwap
- 10% of total mined SUSHI tokens are transferred to the Development Team.
SUSHI Token Release Schedule
When mining SUSHI, users are free to withdraw SUSHI tokens with a slight amount of Gas Fee.
SUSHI Token Sale
Sushi doesn’t have any token sale program, the only way to earn SUSHI tokens is to provide liquidity to pools. However, in July 2021, Sushi proposed to sell a number of SUSHI tokens to Venture Capitals which caused several controversial discussions in Sushi’s community.
SUSHI Use Cases
Rewards: Everyone with ERC-20 tokens including the SUSHI token can add liquidity to pools. Liquidity providers have to deposit both tokens of the token pair with a ratio 1:1. As a result, they earn 0.25% of transaction fees in SUSHI tokens and Sushi Liquidity Provider tokens (SLP).
Sushi Liquidity Provider token (SLP): When staking SLP tokens in the Osen pools which are organized by the SUSHI incentive program named Osen, users are rewarded with SUSHI tokens.
Governance: SUSHI is a utility token and xSUSHI is a governance token, that means xSUSHI holders are able to participate in voting decisions on upgrades and future changes on the Sushi platform. By staking SUSHI locked for 6 months, Liquidity Providers are rewarded with xSUSHI. The indispensable advantage of xSUSHI is that holders are rewarded with 0.05% of Tx Fees.
Lending/Borrowing: Sushi’s lending platform is Kashi Lending, a product of Bento Box. Bento Box is like a vault storing tokens to earn yield and use its services such as Kashi Lending and Synthetic Assets. Kashi Lending uses Isolated Lending Pairs that allow users to borrow from separated pools. As a result, instead of having all liquidity in one pool, Kenshi Lending has multiple isolated pools in order to reduce the chance of all pools getting hacked at the same time.
Launchpad: Sushi’s IDO platform called MISO is for startups launched on the IDO platform to attract support from the crowded Sushi community. Therefore, SUSHI tokens are demanded to participate in future token sales.
How to get SUSHI Token
You can get SUSHI by buying the token on CEXs/DEXs:
- DEXs: Sushi, Pancakeswap, Uniswap, etc.
- CEXs: Binance, Huobi, OKEX, etc.
How to buy SUSHI tokens
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select SushiSwap.
Step 3: Choose coin/token for trading:
- Search SUSHI.
- If the search does not come up, you can paste the contract of SUSHI into the search box: 0x6b3595068778dd592e39a122f4f5a5cf09c90fe2;
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to store SUSHI
You can store SUSHI token on Coin98 Wallet following these step below:
Step 1: At the main screen of Coin98 Wallet, click Receive
Step 2: Search for SUSHI token
Step 3: Choose the blockchain (Ethereum, BSC, Solana, ..etc) depending on your need.
Step 4: Copy your SUSHI wallet address and send SUSHI tokens to this address.
Beside Coin98 Wallet, you can also store SUSHI Token on other wallets such as: Metamask, Coinbase Wallet, WalletConnect, etc.
In 2021, Sushi published a detailed plan to improve and create multiple new features and products that can benefit the Sushi community.
AMM v2: Sushi plans to upgrade to AMM v2 which has delegated pools and many other features.
New Domain with IPFS: SushiSwap changed its domain name to show the future direction that they are focusing on: not only on AMM DEX but also on other products.
Governance: Sushi aims to get the Governance Process by the end of Q4 2021.
Onsen: Sushi wants to support startup projects to flourish on SushiSwap by introducing them to the Sushi community.
Team, Investors, and Partners
- 0xMaki is an anonymous core contributor and founding member of SushiSwap.
- Joseph Delong is the Chief Technology Officer at SushiSwap.
- Other members of SushiSwap remain anonymous.
At the moment, Sushi doesn't have any investors because they have an abundant amount of 10% of mined tokens. On the other hand, there has been a discussion about future investors.
Sushi is now one of the largest decentralized exchanges in the world of De-Fi in terms of market share. They have huge support from the community as well as many supports from other organizations for instance:
Sushi X Harmony Partnership: In Jun 2021, to reduce transaction fees and to increase the transaction speed, Sushi and Harmony now joined hands to deploy SushiSwap natively on Harmony. They launched a $4 million dollars incentive campaign for liquidity mining rewards, hackathon programs, and other financial services
Is SushiSwap (SUSHI) a good investment?
Overall, Sushi is a very strong competitor in the DeFi space. There are a few notable points that you should take into consideration before making any investment decisions:
- No KYC which means only a decentralized wallet is required to do transactions.
- Earn passive income on SushiSwap by providing liquidity.
- Sushi’s ambition is to dethrone Uniswap which is now leading the DEX market.
Sushi not only provides users the swapping service but also has an ecosystem behind it as in the following picture:
- SushiSwap (AMM Protocol)
SushiSwap integrated 16 chains into the ecosystem, presenting the particularly strong exposure of the AMM DEX.
- Blockchain platforms: Avalanche, BSC, Ethereum, Harmony, Fantom, Heco, Celo, OKExChain, and Telos.
- L2: Arbitrum and Polygon.
- Sidechain: Fuse, Gnosis (formerly xDAI), and Palm.
- Parachain: Moonriver.
Despite the strong availability on multiple chains, Sushi is not going to dominate all with its strong basis of users and liquidity. There are always stronger and more potential rivals in the ecosystem to go on the race with Sushi. For instance, in the BSC ecosystem, the TVL of Sushi is just $40M, too small when compared to the $4B TVL of the largest DEX, PancakeSwap.
⇒ The multi-chain expansion of Sushi doesn't ensure to be the strongest dominator in the ecosystem. On the other hand, on Arbitrum, SushiSwap is leading the ecosystem with the domination of 30% since there is no particularly competent Arbitrum-native DEX.
Currently, Sushi's TVL is now being drained out of the protocol. The $2B TVL is now equal to the June 2021 mark (previous 8 months). In addition, the trading volume has no outbreak even though it's billions of dollars. The Sushi team is integrating more chains and releasing more DeFi products to attract more new TVL waves and newcomers.
Sushi has an indispensable potential in the future with all mentioned key advantages. But this is not financial advice. As a result, a solid understanding of the Sushi project will help you make investment decisions that are profitable in the long run.
In the DEX race, Uniswap is a strong competitor to not only Sushi but also other decentralized exchanges on other blockchain platforms such as:
- Pancakeswap: a decentralized exchange built on BSC for swapping BEP20 tokens.
- MDEX: an Automated Market Maker (AMM) DEX based on the concept of fund pools. MDEX is built on Heco Chain and Ethereum.
- 1inch Exchange: a DEX aggregator with smart routing.
In short, Sushi is now one of the largest decentralized exchanges in the world of DeFi. In contrast to the community's initial prejudice, Sushi has had an incredible growth chasing up Uniswap.
However, like other Ethereum-based projects, SushiSwap has an emerging problem which is network congestion. The SUSHI token, on the other hand, can possess great potential when the roadmap is finished. Finally, Sushi has shown to the world of DeFi as a practical example that no project has a stable position, even Bitcoin.
That is all you need to know about SushiSwap and the SUSHI token. Hopefully, it helps you get insight into this project and its future potential. If you want to know further about Sushi, please leave a comment below. Any feedback would be greatly appreciated.