SushiSwap (also known as Sushi Exchange) is a fork of Uniswap. Sushiswap does not build a brand new model, it still follows the core design of Uniswap and remains an AMM model, an automated market maker (AMM) decentralized exchange (DEX) developed on Ethereum. Sushiswaps token pool is basically the same as Uniswaps. The main difference between the two is that Sushiswap added a token economic incentive, which is to allocate a portion of its transaction fees to holders of the Sushiswap token, SUSHI.

SushiSwap Feature Introduction

The main users of SushiSwap are DeFi traders and related organizations, who provide liquidity to take advantage of the project token boom. By abandoning the order book, the liquidity issues and other problems inherent in decentralized trading can be completely eliminated. In addition, it has also improved its parent UniSwap protocol for its users. The platform charges only a 0.3% commission on trades through its liquidity pools, and a portion of these fees will be returned to users in SUSHI tokens.

SushiSwap Fees

Sushiswap issued its platform token SUSHI, which also has a 0.3% transaction fee. It splits this 0.3% transaction fee into two parts, with 0.25% going to LPs in the same way as Uniswap, and the remaining 0.05% being used to buy back SUSHI tokens, which is to use this portion of the money to buy SUSHI tokens from holders. This means that the value of SUSHI is tied to the trading volume of the Sushiswap platform. On Sushiswap, the larger the trading volume, the higher the value SUSHI captures. SUSHI tokens, like COMP, LEND, and YFI, can also be traded on the secondary market. In addition, to ensure continuous research and development and operations, 10% of SUSHI tokens will be used for development and future iterations, audits, etc.