Defi projects and startups are in the trend these days. Why? Well, because they are exciting, and users are interested in the crypto world. The last year had some projects such as Aave ($AAVE), Uniswap (UNI), Synthetix (SNX) etc. New projects in this space keep coming. There are currently around $11 billion locked in different defi applications. This statistic is according to defi pulse. One such application that has been in the hype wave is SushiSwap.
If you want to benefit from receiving free tokens in defi, take a look at our defi airdrop guide on how to qualify yourself to receive token airdrops.
But, if you are here for the tech, learn from our decentralized finance guide on the capabilities of Defi, how it is used now and what it can be potentially used for. Without further ado, let us have a look at this Sushiswap Review.
What is SushiSwap?
It is essentially a software that runs on the Ethereum network and gives incentives to operate on the platform where traders can buy or sell crypto assets.
Not very clear?
Well, it is in simple, a decentralized crypto exchange. Sushi Swap is built on the Ethereum blockchain. This exchange aims to be an evolution of UniSwap, which is one of the most popular Ethereum DEX in the crypto world. In both appearance and function, Sushi Swap is very similar to UniSwap.
If you deposit cryptocurrency in Sushi Swap, you get rewarded because you are providing liquidity. This liquidity is provided to the protocol with SUSHI, which is an ERC-20 token that is rewarded to you in return for your cryptocurrency deposit. Liquidity pooling and yield farming is one way to earn more crypto. The other way is to lend your crypto and earn interest at BlockFi or Celsius Network.
The startup has a controversial history, but there is a big community backing it up. You can access all the smart contracts of Sushi Swap and code on different Medium posts and the GitHub handle of Sushi Swap.
PeckShield is responsible for the auditing of Sushi Swap, and Quantstamp reviews it in regular periods. Much of SushiSwap’s code is from UniSwap and its similar competitors like Compound Finance.
Sushiswap Review – Who is The Founder of SushiSwap?
Well, there are two founders for Sushi Swap, and both of them are anonymous! They are known as Chef Nomi and OxMaki. On August 26th, that users got the first glimpse of Chef Nomi who wrote a blog post on Medium describing the SushiSwap protocol in detail. OxMaki then joined the Discord server of Sushi Swap. They were one of the first participants, and after discussing in detail with Chef Nomi, they became one of the co-founders. At the time of release, around five developers are working on this project.
There are not many details out there about Chef Nomi. But in a recent interview, OxMaki confirmed that Chef Nomi is from Asia. According to some analysis, it also suggested that the origin of the name ‘Nomi’ is Chinese so perhaps this person is Chinese.
On the other hand, OkMaki has a French accent, so they are associated in some way either to France or to a French-speaking middle eastern country. Ox is the starting number of all addresses of Ethereum and Maki is one of the most popular dishes based on Sushi. So, the origin of their names is heavily inclined to culinary sciences!
Sushiswap Review – Is Sushi Swap Safe?
Well, at the time of September 2020, the project is yet to be audited. Note that there is always some risk with depositing money to smart contracts due to bugs. It is correct for large projects, even if they have been audited and tested. SushiSwap has anonymous developers, so the risk factor of investing money in this platform is a little riskier.
Although the experiment is fun, do not deposit more money since you may lose all of it in the worst scenarios. Also, note that the gas costs on Ethereum are higher, so it may take a while for you to make profits through yield farming.
But the developers of Sushi Swap have been actively inviting different auditors to audit their product.
What Makes Sushi Swap Unique?
Sushi Swap is a competitor of UniSwap. One of the unique elements that differentiate this from other competitors is the branding and the SUSHI token.
Sushi Swap aims to redirect all the profits it has earned back to the community that serves it, on the other hand, UniSwap provides the crypto profits to a set of investors who have provided capital to it.
They are crypto paid in the form of a SUSHI token or the $SUSHI coin. Although the different problems with its history and concept relevance from crypto experts, the SUSHI token provides an excellent value proposition and attracts users to hold it rather than the Uniswap.
SUSHI has also got interested in major crypto exchanges, like Binance and Huobi. They were listed on these exchanges just a few days after the token was released. Other large crypto exchanges keep their eye on the SUSHI token than any other foods out there.
Is Sushi Swap A Good Investment?
The value of the SUSHI token at this time is $10.04. According to analysis on some platforms, the safety rank of the investment is around 5 out of 10. It is according to the historical data of the token, the volatile nature of crypto assets, and the turbulent history of SushiSwap. There is a chance that the value of SUSHI can reach an all-time high or all-time low shortly. The safety rank compared to other cryptocurrencies in the line, SUSHI ranked 68 out of 3577.
How Does SushiSwap Work?
Let us continue this SushiSwap review by understanding how the platform works. The concept of SushiSwap is similar to other DEX, it consists of multiple asset pools. In turn, two assets are containing in each crypto pool, ETH and LINK. SushiSwap has an automatic market maker to determine the price of the tokens, it uses the ratio between the assets in each crypto pool.
During the initial release of SushiSwap, the company’s focus was on the Uniswap LP that are ERC-20 tokens that are given to those who provide liquidity by depositing assets onto the pools on the UniSwap platform.
You can exchange these tokens for other LP tokens or even assets in other Defi protocols. The users who invest to provide liquidity also get a part of the trading fees of the assets in the pools.
SushiSwap made a smart move initially to reward users on the UniSwap platform for staking their tokens through the protocol of SushiSwap. That is, in the first two weeks of the launch, around 1000 SUSHI crypto tokens were issued for every block of Ethereum for users who staked it on the SushiSwap asset pools. The interest grew dramatically during this time, due to the high reward system of SushiSwap.
Through this exchange, you can convert between ETH and other ERC-20 tokens. The best part is you do not undergo the tedious process of completing your KYC to use this exchange, like the other ones in the market. SushiSwap is a decentralized exchange that runs solely on Ethereum blockchain. Have an Ethereum based wallet like MetaMask and some fees to pay for the Ethereum network gas. The trading fees on the crypto exchange is very similar to the UniSwap platform, which is at 0.3%. This is then divided into providing liquidity to the crypto pool, and some portion of it to the Sushi Bar pool.
SushiSwap Yield Farming Menu Farm
One part of the Menu farm is the creative and quirky names given to the different pools! You can do SushiSwap staking to contribute to these pools and earn interest annually.
At the time of writing, Sushi Party is the pool that is providing the highest yield. To put it into numbers, you get around 100% +APY on the SLP tokens that your stake.
Sushi Bar in SushiSwap
In simple words, through the Sushi Bar, you can stake SUSHI tokens to earn more SUSHI tokens in return! Previously, remember that it was mentioned that a portion of the trading fees goes to the Sushi Bar pool? It is where the rewards come from because the charges are added to the Sushi Bar pool through SLP tokens.
At the time of writing, the team of SushiSwap is developing a framework for governance. It is called Omakase DAO that will provide protocol control to the community. If you have received SLP tokens from providing liquidity to the various pools, or if you have xSUSHI crypto tokens, you have the power to vote for the different changes you want on SushiSwap.
More details are waiting to be released. But you will probably need to stake some tokens to be able to be a participant in the voting.
What is the SUSHI Token?
Another important topic of this SushiSwap review is the SUSHI token. If you provide liquidity through the SushiSwap decentralized exchange, SUSHI is an ERC-20 crypto token. You can then stake the crypto tokens to exchange for SLP tokens that you can use as governance to the protocol.
Initially, it was introduced to provide rewards for the users who used the protocol to provide liquidity. Therefore, they would receive a cut of the SushiSwap fees even after they stop providing liquidity to the pools on SushiSwap. You can achieve this as a crypto user, through the SushiBar, where you can stake SUSHI tokens to earn more SUSHI tokens.
Where can I get SUSHI Token?
Well, it is easy. On September 1, Binance listed SUSHI on its exchange and that might have caused the price of the token to increase rapidly. Following that, Huobi and OKEx, which are two popular exchanges, have also listed the token. So, you can exchange and trade for the SUSHI token at these exchanges.
But if you want to purchase the token on any decentralized exchanges, UniSwap is one option for you. Of course, you can get the crypto token from the SushiSwap Exchange as well. Note that the liquidity of these decentralized exchanges is high, and the high trading volume. So, you should not have any problems purchasing these cryptocurrency tokens.
How does SUSHI Rewards Distribution Happen?
You get the SUSHI tokens from mining for liquidity. Recall the motive of the SushiSwap platform that aims to provide liquidity from users to its various pools. For specific Uniswap tools, you get SUSHI tokens as rewards. If you have Uniswap LP tokens, stake them in SushiSwap tools, and then you can begin to start SushiSwap earning.
To provide more incentive, among all the pools, SUSHI-ETH gives double the rewards. Also, SUSHI provides community governance, and people who are eligible for voting can vote to add additional crypto pools.
UniSwap vs SushiSwap
On the general outlook, UniSwap and SushiSwap are similar. Especially after UniSwap who release their own UNI token. Many claim SushiSwap to be a rip-off from UniSwap with some minor modifications and theme changes. But there is one issue that SushiSwap has successfully addressed while UniSwap has not yet.
To begin with the similarities, UniSwap also provides rewards to users through a cut on their trading fees. If you contribute more to the UniSwap, you will earn more from trading fees.
But the issue is when the pool grows, the users who contribute less to the liquidity will see their rewards diminishing. Like, users who contribute large amounts like venture capitalists, cryptocurrency exchanges, and mining crypto pool get a majority share of the trading fees.
But SushiSwap has solved this in a way. What it does is, provides early users ten times the rewards than those users who join the protocol at a later time. They get the crypto rewards in the form of the SUSHI token. You can then use this SUSHI token to get a cut from the trading fees from the various pools even if you have stopped contributing to the liquidity to the crypto pool. It equalizes the people who contribute less to the crypto pool from those who contribute more money such as rich people or large financial organizations.
How to Provide Liquidity for SushiSwap?
So, have you decided that you want to earn SUSHI tokens? Following is a process where liquidity is provided to the UMA-ETH pool. But, the process is similar for every other liquidity pool along this line.
- Go to the UniSwap platform, to begin with.
- Click on the ‘Pool’ Tab
- Click on ‘Add Liquidity’
- Select the base as ETH if it is not yet set by default
- Click on ‘Select A Token’ and select UMA, because we are working with the UMA-ETH pool here
- Enter the quantity (amount) of UMA and ETH you want to contribute to the liquidity pool
- Once confirmed, the liquidity to the pool is added. You will get the ETH-UMA UNI-V2 LP tokens in return. Later you can stake these on SushiSwap to earn your SUSHI tokens.
But note that in some cases, you may receive different tokens while redeeming for contributing to the liquidity. It is due to impermanent loss. In simple words, impermanent loss occurs when you contribute to the liquidity to a pool, the prices of the assets you deposited changes compared to the time when you deposited them. If the price change is large, you will face more impermanent loss.
SushiSwap Guide – How to Stake?
Here are a few simple steps to stake for SUSHI tokens.
- Go to the website – www.sushiswapclassic.com/staking, and here you will unlock your crypto wallet.
- Here, you will see Sushi Bar. Read the details about this above. Here, you can earn a portion of the trading fees by staking Sushi, from all the different pools in the crypto exchange.
- You will see the option to ‘Approve SUSHI’ before usage. Then complete the signature of your transaction using MetaMask or any similar wallet.
- Once approved, you will see an option to ‘Convert to xSUSHI’ to stake your SUSHI.
- Then you will see another window where you enter the amount of stake you want to do. Choose the amount and click on the ‘Confirm’ button.
- Following that, you will see the xSUSHI available. Although this amount will not change, the amount of SUSHI it will represent or value will change.
But note that at this time, there is no way you can see how many rewards you will be getting beforehand until you complete the withdrawal process. The team behind SushiSwap Coin is putting efforts to fix this.
SushiSwap Guide – SushiSwap Price Prediction
According to the market cap, SUSHI comes in the top 10 defi projects. This statistic is according to Santiment. According to this same source, the market cap of SUSHI is close to $253 million. Even though the crypto market size is high, the price of the SUSHI token is one of the lowest among the other defi players.
Now, predictions for SUSHI are on various AI algorithms considering various influencing factors and historical data. For some services like the Digital Coin Price service, the price of the SUSHI token may touch around $2.1 per token in 2021 and increase to $3.5 in 2025.
But another service like the Wallet Investor, the price of the SUSHI token may fall to a few cents over the next 4 years. But on various technical analyses, the crypto price of the crypto token may increase to $3 if the conditions are favorable. But some optimists also believe the crypto price of the crypto token may reach $4 shortly.
Note that these numbers may not be accurate due to the highly volatile nature of the cryptocurrency assets.
SushiSwap Guide – SushiSwap Login Process
One advantage of the Sushi Swap coin platform is that it does not require KYC documentation. That means any person can contribute to the liquidity pools. You do not need permission to invest any amount of money on the SushiSwap platforms.
To begin with, go to the login page of SushiSwap.
You will see a button, Unlock Wallet. Click on it. Connect your ETH wallet to the platform because the base trade will happen through the Ethereum cryptocurrency.
You can connect other non-custodial wallets or the more popular ones like MetaMask and WalletConnect etc.
Grant the permission as the admin to grant access to the connection. Now, you can add to the liquidity of the various pools available.
SushiSwap Guide – SushiSwap Alternatives
There are many exciting platforms like SushiSwap in the market. So, if you want to study its various competitors, check out some services from the list below:
- Binance – A global cryptocurrency exchange that can process up to 1.4 million orders every second.
- UniSwap – Extremely similar to SushiSwap, it lets you provide liquidity to various pools in return for interests and tokens.
- KyberSwap – It is a platform that offers complete control of your funds since it is non-custodial. You can trade directly from KyberSwap by connecting it to your Ethereum wallet.
- ParaSwap – Here, you will find multiple decentralized exchanges in one place where you can compare prices. In one transaction, you can split up orders across crypto exchanges depending on the optimal price.
- 1inch – Another aggregator for decentralized exchanges, and you can split up trades with different crypto exchanges.
SushiSwap Guide – SushiSwap Social Media Handles
The SushiSwap website is sushiswapclassic.org. It is where you can begin your journey with SushiSwap.
If you want to get regular SushiSwap news, you can follow the Sushiswap Twitter handle – @SushiSwap (SushiChef).
Minimal Initial SushiSwap Offering – SUSHI MISO
MISO is a new suite of open source smart contracts developed to make the launch process of new projects easier on SushiSwap Exchange. MISO is a one stop place for projects and founders to easily create project tokens and launch communities and governance around it.
Think of this like a Binance Launchpad but a decentralized version of it. SushiSwap aims to create the launchpad that suits both non-technical and technical DeFi project founders to ensure successful and easy creation and deployment of tokens to SushiSwap exchange.
SushiSwap MISO Markets
Sushiswap MISO Markets are a way to decentralize and distribute goods and do a price discovery on what people are ready to pay for the token. MISO Markets aids new tokens in helping them find the initial launch price users are willing to afford, before a general public release on SushiSwap Exchange.
Sushiswap is all about giving a platform for fair launch of new projects. There are a lot of technical components from creating the token to deploying the token on exchange and then automated market makers to liqudity pooling etc. Since these are generally technical and difficult for non-technical teams to afford, Sushiswap decides to break them into Sushiswap Recipes. With Recipes, they provide development teams of the new project the flexibility to succeed with their launch, without having to do a lot of research on the best practices of launching a token on Decentralized exchange.
They aim to standardize the process and give good best practice guidelines for small projects to follow before a general public release happens on SushiSwap Exchange.
Takeaway – SushiSwap Review
SushiSwap is one of the most exciting crypto products out there. Explore this lovely and unique platform to participate in various pools and earn rewards from them. Keep reading this SushiSwap Guide to understand more. It is something new in the crypto world, you can be one of the initial users! But before investing, be careful, only invest amounts which you would not mind losing.
If you are looking for alternative reviews of decentralized exchanges, then take a look at our Diversifi Exchange Review and Curve Finance Review and Notional finance. Last but not the least, if you want to trade higher spot crypto amount or do futures or perpetual trading, please take a look at dYdX Decentralized Exchange.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates