What is SUSHI Crypto? Enter The Sushiswap Project!

While the overall growth of the cryptocurrency space has been remarkable, the Decentralized Finance (DeFi) space continues to thrive. The rising global adoption of the cryptocurrency space has also rubbed off on the growing and competitive DeFi space. The increasing number of financial platforms emanating from the space, providing multiple bespoke services, makes it very attractive. These DeFi platforms now offer users value-added services like yield farming, flash loans, etc. However, while it appears that Uniswap is a top dog in the space, other platforms are beginning to compete. One such platform is SushiSwap- a fork of Uniswap, currently attracting users.

What Is SushiSwap Crypto?

SushiSwap (SUSHI) is a fork of UniSwap, and a decentralized exchange (or DEX) built on the Ethereum network. It began operations in September 2020 and instantly became a hit, as its total value locked (TVL) hit $1 billion a few days after. SushiSwap attracted these funds by convincing its early liquidity providers to stake in UniSwap. After staking, they were to receive a high annual percentage yield incentivized in their native token. In two weeks, these stakes made their way back to Sushiswap, increasing the new protocol’s value. Its developers are two anonymous persons; Chef Nomi and OxMaki. SushiSwap allows users to trade cryptocurrencies without a central operator administrator.

It currently adopts the automated market-making (AMM) model for its decentralized exchange (DEX) protocol. This means that there is no order book on the protocol, as it facilitates cryptocurrency trading via smart contracts. Alternatively, the prices for the trading of these assets are determined via an algorithm. Being a fork of UniSwap, the project utilized the code of Uniswap and possessed similarities to that of the DeFi giants. Alternatively, some differences like native token and reward system exist between them. In Uniswap, liquidity providers stop earning rewards after they stop providing the liquidity. However, the case is not the same with SushiSwap, where liquidity providers continue to earn rewards. The native and governance token of the protocol is SUSHI.

How Does Sushiswap Work?

SushiSwap currently runs on Ethereum and incentivizes a network of users who want to trade crypto assets. This trading undergoes processing via smart contracts in the liquidity pool of the protocol. To become a liquidity provider on the platform, users must lock their assets inside the liquidity pool. This pool is open to all, and its reward system is proportionate to how much stake users have in it. This liquidity pool is synonymous with a market, where everyone can come to buy and sell tokens. A minimum requirement of two deposited tokens qualifies users to be a liquidity provider.

Sushiswap is similar to other DEXs and allows users to swap ERC-20 tokens with compatible likes. Also, to use SushiSwap, users only need a crypto wallet. The process does not require any…