Popular decentralized DeFi automated market maker (AMM) protocols, Uniswap (UNI) and Sushiswap (SUSHI) are once again at the center of much of the bullish activity that has brought massive increases to DeFi markets, according to a new report from CoinTelegraph. As activity in DeFi markets has continued to grow at an explosive rate, both of the platforms have seen correlating increases in their governance token prices.
Indeed, the prices of the governance tokens have also increased. At press time, Uniswap’s governance token was at $27.87, roughly $4 short of its all-time high, which was reached on Saturday. The price of SUSHI was roughly $16.26 at press time; SUSHI reached an all-time high of $19.65 on Sunday.
Sushiswap Began as a Derivative of Uniswap, but the Two Platforms Have Developed Distinctive Reputations
Sushiswap is quite a bit younger than Uniswap: the former platform went live in November of 2020, while Uniswap was launched back in November of 2018. Sushiswap’s protocol was actually developed as a derivative or ‘fork’ of the Uniswap protocol.
However, Sushiswap’s popularity has been so explosive that the platform is already a contender with its elder aggregator. As such, both platforms are playing an important role in the growth of the DeFi space. While several months after the Sushiswap protocol was ‘forked’ from Uniswap, both platforms are developing rather distinct roles in the DeFi space.
Indeed, while Sushiswap was developed as a derivative of Uniswap, the experience of each of these platforms has grown increasingly well-defined. However, perhaps the most important difference between the two platforms has to do with who is in charge of their development and governance.
Both Uniswap and Sushiswap distributed the majority of their governance tokens to community members prior to their official launch. However, Sushiswap distributed 80 percent of its tokens, while Uniswap only distributed 65 percent of its coins.
Therefore, Sushiswap was developed with the intention of giving more control over the platform to the community. However, the platform got off to a bumpy start.
Sushiswap was originally created by an anonymous developer who went by the name ‘Chef Nomi’. However, not long after the platform’s launch Chef Nomi suddenly cashed out of all of their SUSHI token holdings, a move that received much ire from the DeFi community.
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As a result, Chef Nomi stepped down as the lead developer of the Sushiswap protocol and instead transferred control of the platform to Sam Bankman-Fried (aka SBF) of Alameda research. SBF then led the charge on building a community-elected ‘board’ of key-holders, each of which held a piece of the multi-signature login that was needed to make any changes to Sushiswap’s protocol.
On the other hand, the development of Uniswap is continually guided and maintained by the same team that developed the protocol in the first…
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