TL;DR
Decentralized trading protocol, Sushiswap is known for automating the transaction of DeFi tokens via automated trading. Sushiswap utilizes an automated market maker protocol in order to facilitate these trades. Sushiswap launched in 2020 as a fork of Uniswap.
Its goal is to continue the development of its exchange and to keep trading automated and allowing anyone with tokens to be able to trade on its platform. It seeks to improve its efficiency in trading when compared to traditional exchanges. It also wants to improve on additional features not present on Uniswap, including higher rewards for network participants.
SUSHI is Sushiswap's in house token. Traders who participate in the Sushiswap ecosystem either through liquidity providing or other forms are rewarded with SUSHI tokens. SUSHI also serves as Sushiswap's governance token. Holders of this token can take part of the decision making process for Sushiswap.
Introduction
SushiSwap is a platform that runs on the Ethereum blockchain and enables users to directly swap tokens. By holding the native token of the platform, SUSHI, you can suggest changes to how it operates, and vote on other users' proposals. The platform was created in 2020 by the pseudonymous "Chef Nomi" by copying Uniswap's open-source code. Users were promised rewards in SUSHI tokens for locked funds.SUSHI token rewards for locked funds.
Sushiswap gained significant traction and popularity in 2021 due to the surge in popularity of defi and token trading. Sushiwswap is a decentralized exchange, meaning traders can trade tokens for other tokens on its platform. The fees incurred by a trader are paid towards liquidity providers.
For the purpose of creating liquidity, Defi offers trading for many popular tokens. It is an exchange that provides value for the Defi sphere. The other important aspect of this decentralized exchange is that users can only trade erc-20, as it is primarily an Ethereum based exchange.
What Is Sushiswap?
SushiSwap is a decentralized exchange based on Etherum that lets traders swap any erc-20 token. In the Defi space, this is one of the more popular platforms. In decentralized exchanges, there is a lack of liquidity that sours the experience. Sushiswap aims to alleviate this issue. In order to accomplish this, it allows users to swap tokens, thus the platform does not rely heavily on buyers and sellers creating liquidity.
Unlike traditional exchanges that use middlemen and custodians, Sushiswap operates decentralized and trustless. This is done through automated liquidity protocols. Unlike traditional exchanges, there is no order book or central authority facilitating trades.
Over the years, the exchange has gained in popularity and is one of the most popular DEXs, based on volume traded.
What Coins are on Sushiswap
There are around 1,400 tokens available to trade on SushiSwap's platform, including most of the leading DeFi tokens such as AAVE, BAL, MATIC, and the rival DEX token UNI.
What are Sushiswap's Fees?
SushiSwap has a number of fees for its users:
Trading fees: SushiSwap charges a flat 0.3% fee for trading on the exchange. This fee is charged directly by the exchange, while Ethereum gas fees are charged separately by the Ethereum wallets that you use to interact with the exchange itself.
Withdrawal fees: At the time of writing, there are no withdrawal fees charged on SushiSwap. Instead, users have to pay gas fees if they want to transfer their assets to an external wallet.
How To Use Sushiswap?
Given that it’s built on Uniswap’s source code, SushiSwap is just as minimally designed and easy to use, with a simple, clean interface. Swapping tokens is simplicity itself, as is the option to add to liquidity pools.
Sushiswap does not require KYC verification, so beginners don't have to worry about providing proof of identity. Here are some things you can do on Sushiswap:
Swap Tokens
You can swap tokens by connecting a wallet, such as MetaMask as shown below. The connect option should be at the top right hand corner.
Once connected, select "trade" on the menu, then select "swap". Now you can select which two assets you want to exchange, and the amount you wish to trade.
Liquidity Providing
To provide liquidity to this exchange navigate over to the "Liquidity" tab. Hover over it and select "Add".
Once selected you can go ahead and add any two tokens to a pool. You will get a percentage of the transaction fees that is proportional to the amount you have in that pool.
Due to its decentralized nature, many projects launch directly on Sushiswap, giving users access to a wide range of tokens. As a result of its decentralized nature, anyone can list fake coins, misleading inexperienced users into exchanging assets for worthless, sham tokens.
Final Thoughts
Sushiswap is an Ethereum based decentralized exchange. Traders can utilize the platform to trade any erc-20 token. As such, traders have much more freedom and control over there crypto trading experience.
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