Learn about the incentivized decentralized finance protocol that is transforming the way we swap, earn, farm, lend and borrow cryptocurrency assets.
Sushiswap (SUSHI) is a decentralized cryptocurrency exchange built on the ethereum network. It allows users to swap, earn, lend and borrow cryptocurrency assets.
Sushiswap (SUSHI) was originally forked from uniswap. It uses smart contracts to provide liquidity pools that allow users to directly trade crypto assets with no intermediary (Automated Market Maker, AMM). It also allows users to become liquidity pool providers, supplying an equal value pair of two cryptocurrencies in order to receive rewards whenever anyone utilizes that pool.
Sushiswap started as a fork of Uniswap on the ethereum network. SushiSwap was created in 2020 by a pseudonymous individual or group called Chef Nomi, along with co-founders Sushiswap and 0xMaki.
They offered both a governance token (SUSHI) and liquidity mining which enabled users to stake and mine SUSHI.
September 5th 2020 the Sushiswap project witnessed an incident that would change its trajectory forever. Founder Chef Nomi drained the Sushiswap development fund, making away with 37,400 ether, worth some $14 million at the time. Its governance token (SUSHI) price dropped over 69% in less than a day. The next day, facing pressure from the community, Chef Nomi handed the private key to the SushiSwap smart contract over to FTX CEO Sam Bankman-Fried.
Bankman-Fried postponed the migration, which went on to take place on September 9th, 2020, and migrated $830 million of liquidity from Uniswap.
Facing pressure from the community, Chef Nomi on September 11th, 2020, willingly returned the 37,400 ether and issued an apology to the community.
Following Chef Nomi’s dubious actions and his ensuing departure, the community organized clear rules for ownership and control of the protocol in order to move forward in a strategic way. The ownership of SuhsiSwap got split into Multisig, and Operations Multisig addresses.
On November 30th, 2020, Andre Cronje, Yearn.finance founder, announced Yearn.finance would be merging with SushiSwap. This merger meant that Yearn.Finance and SushiSwap would share development resources, but still maintain their separate governance tokens and systems. Additionally, Yearn’s AMM DEX Deriswap would launch through SushiSwap.
MULTI-CHAIN SWAP (AMM)
SushiSwap allows users to trade cryptocurrencies across different blockchain networks without the need for a central operator.
MULTI-CHAIN LIMIT ORDER
Typically AMMs only settle orders with market price, which represents a significant limitation compared to orderbook driven exchanges. SushiSwap addresses this critical AMM pain point with the release of the limit order feature.
Limit orders on SushiSwap work in a completely decentralized manner, without the need of any centralized administrator. The system consists of two contracts: OrderBook and Settlement. Sushiswap limit orders use funds from BentoBox, to create a limit order depositing into BentoBox is required.
Liquidity providers earn a 0.25% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity
Kashi LENDING & LEVERAGE
Sushiswap offers isolated lending markets, elastic interest rates. Leverage long, short assets or create your own market.
By staking SUSHI you can earn Sushiswap governance rights and 0.05% of all swaps from all chains in one simple place. For every swap on the exchange on every chain, 0.05% of the swap fees are distributed as SUSHI proportional to your share of the SushiBar. When your SUSHI is staked into the SushiBar, you receive xSUSHI in return for voting rights and a fully composable token that can interact with other protocols. Your xSUSHI is continuously compounding, when you unstake you will receive all the originally deposited SUSHI and any additional from fees.
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Shoyu is an NFT marketplace offered by Sushiswap.
Sushiswap offers an API service to independently use some of its resources.
SushiSwap is governed by its community, via forum discussions and voting on proposals held on the SushiSwap Snapshot. Only proposals posted to the Snapshot voting system by the CORE can be considered binding if passed with a quorum.
Major structural changes and use of the devfund wallet are voted on by the community, whereas smaller changes affecting operations, as well as changes of SushiSwap menu farming pairs, are decided on by 0xMaki and core team.
SUSHIPOWAH is Sushiswap’s voting metric, and is decided as follows:
Each SUSHI in the SUSHI-ETH pool is worth 2 SUSHIPOWAH
Each SUSHI held via xSUSHI tokens equal 1 SUSHIPOWAH
To be an eligible voter for any proposal on Sushiswap Snapshot, you must have SUSHIPOWAH from any or all of the 2 above options at the time of the vote being started. This means that you cannot simply buy SUSHI tokens to vote on an already ongoing vote, and is meant to reduce the risk of influence by whales and flash loaners.