What is SushiSwap?
SushiSwap is a decentralized exchange (DEX) based on the Ethereum network and powered by customized automated market maker (AMM) smart contracts.
The use of the AMM model enables SushiSwap to solve liquidity problems. In addition to token swap services, SushiSwap offers yield farming, an ability to stake the protocol’s token SUSHI, lending and new token offerings.
SushiSwap was launched in August 2020 by anonymous developers hidden behind pseudonyms "Chef Nomi," "OxMaki" and "SushiSwap." Little information on the project’s founders was available, apart from their Twitter accounts.
In September 2020, Chef Nomi unilaterally withdrew one-quarter of the project's developer funding pool, a sum worth more than $13 mln at that time, causing major controversy in the crypto community. Following the ensuing accusations of fraud, Chef Nomi returned the funds and made an apology.
SUSHI is a governance token used on SushiSwap. Originally, SUSHI was used to reward liquidity providers who can also use their tokens to vote on protocol parameters.
In September 2020, the SUSHI token was listed on the Binance exchange, and control over the project was transferred from the original, anonymous founders to FTX CEO Sam Bankman-Fried.
SUSHI can also be staked in SushiSwap’s Sushi Bar.
How to use SushiSwap?
If you want to use SushiSwap, you need to buy some ETH on any exchange that supports fiat-to-crypto swaps.
Once you have ETH in your wallet, you can sign up on SushiSwap.
To make a swap, you need to first select the input and the output token. Now enter the amount of the input token that you wish to spend on swapping with the other token.
To add liquidity, a user needs to go to the pool tab and click on the Add button. While providing liquidity, users are required to pay an equal amount of both tokens that they wish to add to the pool. A user can enter the value of one of the pair’s token, and the value of the other token will be automatically displayed.
A group of anonymous developers founded SushiSwap. The MasterChef solution enabling the minting of SUSHI tokens was launched.
FTX CEO Sam Bankman-Fried started the liquidity movement, where around $800 mln worth of LP tokens were used to drain value from Uniswap. After that transfer, Uniswap returned to its previous volumes. Later, the SushiSwap community voted via Discord to create a multisig key to the SushiSwap smart contract.
The BentoBox lending solution was launched. It was designed to solve the protocol’s limitations by employing isolated lending pairs, on-chain and off-chain flexible oracles - liquid interest rates and contracts optimized for low gas.
SushiSwap partnered with Yearn.Finance.
The SushiSwap team introduced a new token launchpad called MISO, making it easier for developers to launch their products on the exchange. The original vision of MISO was to be a permissionless and hurdle-free token launchpad with an intuitive platform that would be used even by the least technical users.
Trident, a new AMM protocol built by the Sushi team, introduced new types of liquidity pools, marking a departure from the typical singular constant product pool used by other DeFi protocols.