This post is a review of SushiSwap!
SushiSwap is a popular multi-chain decentralised exchange.
It is one of the top DApps in the DeFi space to attract billions of dollars in total value locked (TVL).
SUSHI is the native token of SushiSwap.
Today, I will walk you through SushiSwap, how to use it, and all you need to know about the SUSHI token.
Post Summary
This is what I will cover:
- What Is SushiSwap?
- SushiSwap Services
- How To Use SushiSwap
- SUSHI Token Explained
- Where To Buy SUSHI
- How To Stake The SUSHI Token
- Is SushiSwap Safe?
- FAQs
- Conclusion
To get to the details right away, click on the jump links.
Let’s get started!
1. What Is SushiSwap?
Sushiswap is an automated market maker and a decentralized exchange.
It launched on August 26, 2020 (during the DeFi bubble).
Impressively, within a few weeks of its inception, it rose to become a top DApp, with billions of dollars in TVL. This wowed crypto enthusiasts and investors alike.
The pseudonyms, 0xMaki and Chef Nomi, officially founded SushiSwap.
But, after a snafu, ownership was transferred to FTX’s founder, Sam Bankman-fried, and a multisig wallet with nine signers was created. (More about this later).
Sushiswap, in general, allows traders to swap tokens or earn passive income by locking their assets in a liquidity pool.
What makes SushiSwap outstanding is its multichain integrations.
It is primarily built on the Ethereum network, but it can also be accessed via a variety of blockchains such as Polygon, BNB chain, Harmony, and others.
Let’s go on to SushiSwap’s services.
2. SushiSwap Services
They include:
(a) Trade
If you want to buy or sell cryptocurrencies on Sushiswap, this is the place to go.
Let’s assume you want to trade your ETH for AKRO. There are two “Trade” options:
- Swap – You will choose this option if you want to instantly and automatically buy or sell tokens at the current market rate.
- Limit – Alternatively, you can set the rate at which you want to buy or sell an asset using this option.
(b) Liquidity
Remember that I talked about Passive income. You can earn it in this section by becoming a liquidity provider.
This means that you will deposit two assets of equal worth to earn a share of the trading fees. Let’s say $50 worth of ETH and $50 worth of AKRO.
The following are featured under “Liquidity”:
- Pool – When you add liquidity, it shows up here with your earnings.
- Add – This option enables you to add a pair of tokens.
- Migrate – If you provided liquidity on Uniswap, you can move it to Sushiswap and earn SUSHI tokens by clicking here.
- Import – By clicking here, you can import tokens that do not show up on the “add” interface.
(c) Farm
This is the SushiSwap yield farming product.
To put it simply, yield farming is the same as becoming a liquidity provider.
By clicking on “Farm”, you will see the following features.
- Onsen Menu: It is a program for generating liquidity for newly released tokens that have met this requirement. Liquidity providers, on the other hand, earn rewards through these two options:
- SushiSwap Farm: Here, you add liquidity to the available pairs and stake SLP tokens for more rewards. (SLP is the token you have earned as a reward)
- Kashi Farms: With this option, you are only lending one asset to the paired tokens to earn KMP tokens. For instance, if you choose the USDT/WETH pair, you will only lend the USDT token.
- My Farms: Your current yield farms are displayed in this interface.
(d) Kashi
Kashi is a lending and borrowing platform of SushiSwap. It features these two options:
- Lend: To lend your idle crypto, click on “Lend” and select an asset pair, then click “deposit” to proceed. Each pair has a “Supply APR” which is the interest rate that lenders earn.
- Borrow: It is a collateralized loan. Each pair has a “Borrow APR” which is the interest rate that borrowers must pay. To borrow, take these steps:
- Click “borrow”, and select a pair.
- Enter the amount of collateral you want to deposit and the amount of the paired asset you will get as a loan will display.
- Proceed to approve the transaction in your wallet.
(e) Miso
Miso is SushiSwap’s launchpad.
Launchpads are platforms for launching new tokens.
Miso features a new project’s tokens occasionally, allowing investors to commit a particular token and take part in a presale.
(f) Explore
This product embodies the following features:
- Sushi Bar: Assume you have some idle SUSHI tokens in your wallet. You can stake it here to earn a portion of the 0.05% fee paid by traders. Your rewards are paid in xSUSHI, which can be used for voting rights, staked in other Defi Dapps, and redeemed for SUSHI when you unstake.
- Meowshi: SUSHI or xSUSHI can be staked here and converted into MEOW for more rewards. {MEOW is a yield-bearing token with some voting rights}
- Yield Strategies: Alternatively, here, you can stake SUSHI tokens on BentoBox or Aave to earn xSUSHI.
There you have SushiSwap services!
Note: Sushiswap supports multiple chains, and its services are tailored to the chain you’re using. The services listed here are available on the Ethereum network.
Continue reading!
3. How To Use SushiSwap
Take these easy steps:
- Visit Sushi.com and click “Enter App”
- Click “Connect to a wallet” and select your preferred wallet.
- After you have successfully connected your wallet, the next step is to select the blockchain you want to use.
You can easily do this by tapping on the logo of the current blockchain.
You can now go on to use the services.
4. Sushi Token Explained
SUSHI is the native token of SushiSwap.
It is an ERC-20 token created to reward liquidity providers.
Additionally, it is the governance token of SushiSwap.
There was no presale for this token and the total supply is capped at 250 million tokens, which is estimated to all be in circulation by 2023.
The daily supply of SUSHI is dependent on the block rate.
It is currently (6/7/2022) being produced at a rate of 10 tokens per block.
According to Coinmarketcap, 51% of SUSHI is in circulation.
Now, SUSHI is both an inflationary and deflationary token.
It is inflationary because tokens are constantly being issued per block.
On the other hand, SUSHI has a limited supply.
Also, traders’ fees are frequently used to purchase SUSHI to pay liquidity providers, thus making it deflationary.
SUSHI reached an all-time high of $23.38 on March 13, 2021, but is now trading at $1.66 on June 7, 2022.
There are a plethora of exchanges where you can trade SUSHI. You will find them listed below.
5. Where To Buy SUSHI
These are my top picks!
1. Binance
Binance is the biggest exchange in the world with over 13 million users.
The exchange has good liquidity and volume for all supported SUSHI trading pairs.
You can trade SUSHI against the following currencies:
- USDT, BUSD, BTC, BNB
2. Huobi
Huobi is one of the oldest crypto exchanges founded by Leon in 2013.
It is a reputable exchange and supports a plethora of cryptocurrencies.
One of the things that makes Huobi remarkable is that it has never been hacked since its inception.
SUSHI is traded against USDT, BTC, ETH, and HUSD on Huobi.
3. Kucoin
Kucoin is a Seychelles-based crypto exchange founded in 2017.
Coinmarketcap puts it third among the “Top 100 Crypto Exchanges”.
Every day, up to $7,420,000,765.57 in volume is traded on Kucoin.
SUSHI is traded against USDT on Kucoin.
4. Gate.io
Gate.io is a trading platform that was founded in 2013 and is run by Gate Tech. Inc.
Users can trade spots and futures seamlessly on the exchange.
And it supports up to 500 coins, including BTC, DAI, ETH, etc.
On this platform, you can trade SUSHI against USDT.
Other exchanges where you can buy SUSHI tokens can be found here.
Now, since SUSHI is an ERC-20 token, it means you can store it in Web3 wallets like Metamask and Trust Wallet.
These exchanges listed here also provide SUSHI wallets to users.
So, you have bought your SUSHI tokens. Let me show you how to stake them for passive income on Sushiswap.
Scroll down!
6. How To Stake The SUSHI Token
There are three ways to stake SUSHI on Sushiswap.
- Sushi Bar
- Meowshi
- Yield Strategies
We will take them one after the other.
(a) How To Stake SUSHI on Sushi Bar
- Step 1. Visit Sushi.com. After clicking “Enter App,” click “Explore” and select “Sushi Bar.”
- Click “Connect wallet” to connect your preferred wallet. Make sure you have your SUSHI and the network’s token for fees in the wallet.
Say you selected the Metamask wallet and wish to use the Ethereum network. You’ll need some SUSHI and ETH tokens in it.
- On the “Stake SUSHI” column, enter the amount of SUSHI you want to stake and approve it in your wallet.
Once the transaction is approved, you start earning xSUSHI in reward. At the time of writing, the APY was 17.66%.
You can unstake your SUSHI by clicking “Unstake” and approving it in your wallet.
(b) How To Stake SUSHI on Sushi Bar
- Alternatively, go to “Explore and select “Meowshi.”
- Enter the amount of SUSHI you want to stake, it will be converted to xSUSHI, then to MEOW tokens. The amount of MEOW tokens you will get will be displayed. approve your transaction.
1 xSUSHI equals 100,000 MEOW tokens.
When you are done staking, click “Un-Meow” to unstake.
(c) How To Stake SUSHI on Yield Strategies
- Select “Yield Strategies”
You can stake SUSHI on either the BentoBox or Aave here.
- To stake SUSHI on BentoBox, select “SUSHI➝ Bento” and switch the deposit button.
Next, enter the amount of SUSHI you want to stake, it will be converted to xSUSHI. Approve the transaction in your wallet.
If you want to stake on “Aave” instead, select “SUSHI➝ Aave”, and repeat the same step.
There you go! You can now enjoy your staking rewards.
Please note that you can only stake SUSHI on Sushiswap through the Ethereum network.
Now that we have covered SushiSwap, the question is, should you trust SushiSwap?
Find out below.
7. Is SushiSwap Safe?
At the start of the project, the team established a development fund that will get 10% of every SUSHI distribution.
These funds’ smart contract was audited. However, there were no locks placed on it. Additionally, Chef Nomi, one of the founders had access to it.
On the 5th of September 2020, he sold all the dev funds and pulled the rug on the project.
This drew the attention of the crypto community, particularly Sam Bankman-Fried, who stepped in to save the project.
He wrote proposals to restore Sushiswap and created a multi-sig wallet with 9 signers, which was voted by the community.
This action restored SushiSwap to a more decentralized and properly guarded state.
And oh! on the bright side, Chef Nomi returned the dev’s fund.
Since then, there hasn’t been any news of security attacks on this DApp.
However, DeFi is a risky space, always DYOR!
Next is FAQ!
8. FAQs
Sushiswap supports the following blockchains:
– Ethereum, Polygon, Arbitrum, Moonbeam, Moonriver, CELO
– Fantom, Optimism, BSC, Gnosis, Harmony, Telos EVM, FUSE
It charges a 0.3% fee for traders.
– 0.25% of this fee is distributed to liquidity providers
– The remaining 0.05% is distributed to stakers in Sushi Bar.
It is a pool of large crypto funds on SushiSwap locked in a smart contract.
It depends on the blockchain you choose to use. This is because it is a decentralized exchange.
Allow me to elaborate – If you opt for the Ethereum network, you will be able to use all Ethereum-based tokens on SushiSwap.
If you can find it on the list, then you can “import” it.
Cryptocurrencies, as you may be aware, are extremely volatile.
So, there is no way to predict the price potential of SUSHI.
However, we might expect a variety of factors to influence SUSHI’s price, including:
– SushiSwap’s trading volume, new developments, market trends, sentiments, etc.
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9. Conclusion
Despite the initial mishap, Sushiswap stands strong as a top Defi Dapp with over 2 billion dollars in TVL (info from Defi Liama, 6/8/2022).
Here, we call it a wrap. I hope this post provided you with all of the information you were looking for.
What do you think about SushiSwap?
Is there anything else you’d like to know about SushSwap and its token?
Put your thoughts in the comment box.
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