SushiSwap is more than just a crypto asset named after your favorite food. SushiSwap was officially launched in the year 2020. Just like Uniswap, it is both cryptocurrencies as well as a decentralized crypto exchange (DEX) platform. This exchange platform brings the opportunity to people to swap crypto assets and hence got the name of the swap. It is assumed that the name of this platform is Sushi because the creator is probably fond of Sushi. If you are interested in bitcoin trading, visit https://www.bitql.cloud/ an utter guide to crypto trading.
Though SushiSwap has an intention to provide a fun environment yet it is no joke this platform has gained more than 3 billion in liquidity and its value has increased by more than 1,500% since November according to the reports of CoinMarketCap. If you are interested in SushiSwap and want to become one of their Sushi Chefs, here is all that you need to know first.
SushiSwap is one of the many decentralized exchange platforms, called an automated market maker (AMM). These platforms allow their users and participants to trade crypto tokens without the interference of any central establishment or power regulating trades. Instead, SushiSwap is capable of deciding and setting prices with mathematical formulas and executes the process of trading smart contracts.
Now, most people wonder about the funds of these cryptocurrencies. To answer their confusion, SushiSwap owns liquidity pools or you can say large pools from where these platforms get the funds. The users lend their crypto tokens or coins to these pools in exchange for prizes and various rewards.
If you are thinking that SushiSwap is the only AMM, it is not true. This platform is developed on another platform, Uniswap (UNI).
The technologies and innovations of the crypto world may have gone places but the controversies are always tied up with their names. The creator, Chef Nomi, did a scam known as rug pull. This scam is when the creator or founder takes the funds of investors from the project. Chef Nomi took over 2.5 million SushiSwap tokens and 20,000 Ethereum in the year 2020 on September 5. It happened right after a week when this exchange was launched.
People all around the world involved in the SushiSwap platform got disappointed but this was not the end of this platform. The CEO of crypto exchange platform FTX, Sam Bankman-Fried, and an early SushiSwap investor provided a deal to take the project and charity 5 million SushiSwap tokens.
Later on, a completely new team was settled to run the project. Chef Nomi, the former creator of SushiSwap also apologized to the public and returned the stolen funds.
SushiSwap brings you a variety of functions on its platform.
Swap: On SushiSwap you can easily trade one crypto asset for another for example turning your USD coin (USDC) into Ethereum’s Ether (ETH).
Farm: You can deposit or invest your crypto tokens into the liquidity pools of SushiSwap to gain rewards and prizes. The liquidity pools consist of combinations of two or more two cryptocurrencies. The users must have to deposit an equal amount of each coin.
Stake: You can also deposit your SushiSwap tokens to earn rewards. This type of earning is known as passive earning in the crypto space.
Lend: On this platform, you can offer crypto tokens to another user to borrow and can earn interest on every coin you lend.
Borrow: Once you have provided collateral, you can borrow crypto.
There is no doubt that SushiSwap is an exciting project, but it is necessary to keep in mind that it is far from the only DEX making waves in the world. This project was inspired by Uniswap, and Uniswap still owns more daily trading than SushiSwap.
Last year, a whole new bunch of decentralized exchanges were launched that involved PancakeSwap too as it took over the crypto market within no time. It is still a question of how many of these exchanges are yet to launch and who will see long-term success.
These are not the only things you people need to know before making any investment but proper research about background and work is a must. SushiSwap looks unique from its name and this name got this platform a lot of recognition and fame. Though it has taken the world by storm it still has a lot more to offer and improve.