- SushiSwap is a popular Ethereum-based decentralized exchange (DEX) that allows users to swap tokens, earn rewards via yield farming, and more.
- It was forked from leading DEX Uniswap, which it initially drained liquidity from via a process called “vampire mining.”
Decentralized exchanges (cryptocurrency tokens and financial services than you’ll find at popular centralized exchanges, plus they allow for trading without an intermediary or a need to provide identifying information.) enable users to trade directly with one another, without going through a centralized intermediary, such as and Binance. That means they can offer access to a wider variety of
SushiSwap has emerged as a popular rival to the leading DEX, , which makes sense: it’s actually based on Uniswap’s code!
Although SushiSwap had a controversial and drama-filled launch, it has since stabilized and now sports a polished design, plus a growing array of decentralized finance () products and services such as yield farming, SUSHI token staking, lending, and new token offerings. Here’s how to become a “DeFi chef” with SushiSwap, plus a look at its volatile history and the SUSHI token.
What is SushiSwap?
SushiSwap is an swap a vast array of tokens, as well as engage in other finance services. It has no centralized authority or middlemen. Instead, it relies on smart contracts—or code that automates processes—and liquidity provided by other users to complete trades. SushiSwap is similar to Uniswap, which also runs on Ethereum, as well as the -based PancakeSwap.-based decentralized exchange that lets you
The history of SushiSwap
SushiSwap launched in August 2020 and quickly ran into controversy. The pseudonymous creator Chef Nomi and his collaborators copied (or forked) the open-source code from Uniswap, but made a key change: the addition of a governance token, SUSHI, which users could buy and earn to have a say in the future of the DEX.
Along with that notable change, SushiSwap wanted to crush Uniswap and take its throne as the most popular Ethereum DEX. The creators devised a “vampire mining” scheme to drain liquidity out of Uniswap via incentives: by providing SUSHI in exchange for users’ Uniswap liquidity pool (LP) tokens. Those LP tokens would then be exchanged for the original assets put into the Uniswap liquidity pools, thus creating liquidity for SushiSwap instead.
If that wasn’t bold and controversial enough, a fresh twist came before the vampire mining campaign could be completed: Chef Nomi cashed out about $14 million worth of SUSHI from the DEX’s developer funds for Ethereum—on…
Read More: decrypt.co