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SushiSwap (SUSHI)

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What is SushiSwap (SUSHI)?

SUSHI is the native token of the SushiSwap, a decentralized exchange (DEX) that pushes users to exchange crypto assets in its platform. Sushiswap’s ecosystem is built on the Ethereum network which means that SUSHI tokens follow one of Ethereum’s tokens standards - in this case, SUSHI is an ERC20 token.  As these tokens power SushiSwap’s platform, SUSHI are considered utility tokens and can be used to stake and earn rewards within the DEX protocol. SUSHI tokens are also governance tokens which means that its owners have a proportional amount of votes depending on the amount of tokens they possess. 

 

What makes it unique?

  • SushiSwap is an Ethereum-based DEX that boosts automated market makers (AMM) and has its native token, SUSHI. Created in 2020 by a pseudonymous individual or a group of people called Chef Nomi, SushiSwap was created using almost the same base code of a different DEX, Uniswap. One of the features that sets both DEXes apart is the governance structure of SushiSwap that relies mainly on its community to decide and implement any major changes within the protocol. 

  • SushiSwap’s platform rewards Sushi owners differently either through Liquidity Provider tokens (SLP) - which are redeemable for the original token (0.25% of every token exchange fee is used to reward those Liquidity providers); through  SushiBar staking (0,05% of every exchange fee is used to reward users), or SLP owners can earn through yield farming by staking their tokens in farms that generate SUSHI. 

 

Finality 

SUSHI tokens are used for different purposes such as governance, staking or providing liquidity. The SushiSwap platform aims to be a decentralized DeFi solution becoming in the near future a complete decentralized autonomous organization (DAO). In this sense, governance and the platform’s management will rely almost entirely on its community.  The mechanism behind SushSwap’s ecosystem is the automated market makers (AMM) system that quotes prices between two (or more) assets using a mathematical algorithm. SushiSwap is also implementing its own lending platform, Kashi, that will provide assets using the SUSHIs staked on its “BentoBox” system - a digital vault where SUSHI owners can stake their tokens and earn yield.  

 

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