SushiSwap Review 2022 - Cryptocurrency Exchange
Making Crypto Simple
The recent explosion of decentralized DeFi crypto exchanges has brought on a whole new world of opportunities, features, and protocols. This has pretty much divided the crypto crowd straight down the middle. Some traders have welcomed this new wave with open arms, because they see it as a step forward and an evolution in decentralized and crypto finance, while others have been more skeptical and have pushed beck on features and tools deeming them unnecessary and complex only for the sake of being complex, with nothing substantial to offer.
SushiSwap took the scene by storm and entered the game as the biggest DeFi protocol provider on the market straight out the gate. The platform still sits comfortably among the top-tier platforms when it comes to Total Value Locked (TVL) tokens and counts more than $4 billion in assets across its premises.
The platform’s native SUSHI token was swiftly placed and made available for purchase at some of the biggest and most popular crypto exchanges in the industry such as Binance and Coinbase, helping the DeFi crypto exchange rise in popularity.
So, how did SushiSwap manage to become this successful and rise through the ranks in just a year? Let’s find out that and more!
About the SushiSwap Exchange
SushiSwap is a cryptocurrency exchange that is focused on DeFi tokens and trading tools. Although for some this is a niche market with a limited offering, others can argue that ShishiSwap is riding the new wave of cryptocurrency, as digital assets are entering their second decade. The trading platform was launched in August of 2020 and is registered as a decentralized crypto exchange or DEX. SushiSwap is an extension of Uniswap. Both platforms utilize the same open-source code.
SushiSwap makes use of the Uniswap open-source code, which happens to be the go-to code for decentralized crypto exchanges that operate on the Ethereum blockchain network. The platform’s pseudonymous founders, Chef Nomi and 0xMaki, sound more like Gorillaz band members than experts in digital currency and DeFi tokens, but don’t let that fool you. ShushiSwap supports a ton of advanced features such as automated liquidity, yield farming, and a plethora of unique offerings that set it apart from every other crypto exchange out there. Let’s take a closer look.
You will be forgiven if at first glance you think of SushiSwap as Uniswap in a different outfit with a different name. Although both platforms share the same source code, the same blockchain network, and a lot of the same features and tools, SushiSwap’s liquidity protocols have eclipsed Uniswap’s in terms of convenience. This is largely because the platforms have different infrastructures in place when it comes to governance token employment.
The SushiSwap DeFi protocol provides segregated markets for every cryptocurrency pair, courtesy of the trading platfrom’s global shared liquidity pools or LPs. By merging all the liquidity and drawing from all sources, SushiSwap has managed to solve the high fee problem that Uniswap has been dragging around for years. The Uniswap V2 token rose to unprecedentedly high fees before the improved Uniswap V3 was introduced, a crux that Sushiswap saw coming and acted accordingly. Why did Uniswap allow this in the first place? Well, the platform exploded into one of the most popular crypto exchanges on the planet and management couldn’t keep up with the fanmail that they were receiving, let alone modify big blocks such as reconstrusting token protocols.
Sushi Token (SUSHI)
The SUSHI decentralized governance token is given to traders that are holders and stakers at SushiSwap. The native cryptocurrency token makes life easier for the crypto platform’s liquidity providers and miners. The SUSHI token is also available for purchase. Traders are able to get their hands on it through some of the biggest and most prominent players on the market such as Binance, Coinbase, Huobi Global, Bitfinex, and of course Uniswap.
Because SushiSwap does most of its deals in ERC-20 tokens, the best wallet for storing and holding funds is an ERC-20 crypto wallet. Rest assured, the market offers a lot of solid choices.
Hardware wallets are the most popular option among traders because they store funds in cold storage – completely offline – and provide data backups. Serious users should consider investing in some of the leading hardware crypto wallets such as Ledger and Trezor. Yes, they are pricey, but they are industry leaders for a reason and asset storage is not something that you should be cutting corners on.
There is the option of storing assets and funds in software wallets as well. These crypto wallets usually come for free and are given or recommended to traders by the trading platform that they are using to conduct trades. However, there are also third-party options to consider. Software wallets can be both custodial and non-custodial. Custodial wallets store digital assets, while non-custodial ones serve only as a link to the user’s final address and a catalyst for data transfers. They are only handy for small quantities and as quick storage points. SushiSwap recommends that users download either Metamask or Atomic Wallet, however, traders are welcome to employ any wallet that they want.
SushiSwap offers non-custodial hot wallet storage that comes in the form of online wallets that are accessible directly through the user’s browser and are an extension of the platform itself. These wallets don’t provide as much punch or security as hardware or software wallets, however, they are the first wallet that SushiSwap users turn to upon receiving funds, as a pit stop before transferring their digital assets to a more secure location.
Minimal Initial SushiSwap Offering (MISO)
The MISO system represents an open-source smart contract that makes it a lot more convenient for traders and investors to launch a new project at the SushiSwap exchange. The trading platform’s Minimal Initial SushiSwap Offering offers users an IDO launchpad with which they can browse or collaborate on builds. MISO has an offering of both technical and non-technical project spaces, which brings everyone together and makes it possible for everyone to participate in the decision-making process. This way, traders, regardless of their skills and expertise, are able to successfully deploy and launch NFTs at SushiSwap.
The platform’s MISO offering provides users with the tools to construct and deal in smart contracts and entirely bypass the traditional construction and coding tokens. The SushiSwap MISO launchpad provides a plethora of already built NFTs that investors can pick up through an auction process and launch brand new tokens directly on the platform itself. The MISO feature is undoubtedly a step forward when it comes to NFTs and IDOs, as it makes the whole process a lot simpler and intuitive.
SushiSwap has a governance framework that goes under the name Omakase DAO. This new offering will allow the users themselves to modify and edit the protocols on the platform and decide how operations are executed. SLP and xSUSHI token holders, as well as SUSHI-ETH trading pair liquidity providers will have the opportunity to vote on protocol and infrastructure changes at SushiSwap, much like shareholders.
Remember, with great power, comes great responsibility.
Stakers need to support the platform with their assets for a certain period of time before they are eligible to take advantage of SushiSwap’s governance offering. The SushiSwap Improvement Proposals or SIPs will be made available on the SushiPowah page at Snapshot.
Here is the gist of it. At SushiPowah, users will be able to employ each of their SLP SUSHI-ETH pool tokens to vote. One token equals one vote that can be used to vote for or against a proposal. For a proposal to be accepted and considered valid, it will need to receive a minimum of 300, 000 SLP votes at a 50% quorum. Once this quota is reached, the decision is locked in place by nine multi-sig key holders.
SUSHI did not embrace ICOs from the very beginning but as the trading platform was quick to find its ground on the crypto market, it began offering ICOs to Uniswap LP token stakers.
The SushiSwap Farm feature allows users to combine two different DeFi tokens into a smart contract. Users are able to use pegged currencies as well as regular, run-of-the-mill tokens.
The farming can be done on double reward farms, KASHI farms, as well as SushiSwap farms.
Yield farming is a protocol through which decentralized exchanges get their liquidity. Users who take the mantle of farmers can get up to 100% in APY on selected assets for lending their funds to the platform’s liquidity pools.
It should come as no surprise that SushiSwap has one of the most advanced and stable yield farming infrastructures. After all, the trading platform offers its services through a variety of avenues such as the cryptocurrency exchange, the staking xSushi derivatives, and the KASHI loan market, all of which stream into the crypto trading platform’s main liquidity pool.
SushiSwap offers a Multi-Chain AAM trading vault that users can take advantage of in order to execute orders on swaps, pool assets, and borrow digital assets. The Multi-Chain AAM even allows traders to build and sell their own NFTs directly on SushiSwap.
The trading platform provides users with a widget that they can use to connect to their crypto wallets.
The KASHI feature is the platform’s bread and butter. It provides crypto traders with the option to do business on loan markets through which they can maximize their capital at every crypto market swing by taking flexible leveraged positions. In other words, KASHI makes it possible for users to significantly modify their positions and stay on top of market movements. This is achieved through the trading platform’s advanced lending algorithms that hold everything in place.
The SushiSwap BentoBox Apps provide smart contract features like no other crypto exchange that we’ve come across. The platform has expanded on smart contracts and what they can carry. At SushiSwap, users are able to increase performance, modify parameters for compatibility, hold tokens, offer and provide loans, as well as select or build strategy approaches within the Ethereum blockchain.
The trading platform’s native vault is situated in plain sight on the SushiSwap UI. Users are rewarded xSushi vault commissions on trade fees. So, each time that a user executes a trade through the SushiSwap exchange, they get 0.05% of the trade fees in their vault.
The Sushi Bar is a pool that holds trader assets. All those 0.05% on trades go directly to xSushi and the Sushi Bar. From here, users can withdraw SushiSwap Liquidity Pool or SLP tokens.
SushiSwap offers crypto traders more than 430 altcoins, ERC-20 tokens, and digital assets that can be combined in more than 520 trading pairs. Traders are able to do business and deal in the most popular, as well as the newest assets round including Adventure Gold (AGLD), Binance USD (BUSD), Wrapped Bitcoin (WBTC), and Solana (SOL).
The most popular pairings at SushiSwap include assets such as USDT, WBTC, WETH, DAI, USDC, Olympus, and SUSHI, which serves as a testament that users do not come here to exchange Bitcoin (BTC) for Ethereum (ETH).
Traders can choose from the many available deposit and payment methods. Users are able to deploy funds via cryptocurrency deposits, debit cards, credit cards, bank transfers, instant swap providers such as PayPal, as well as wire transfers.
Trading Fees and Limits
The decentralized crypto trading platform administers a fixed 0.3% trading fee on trades that have been made and executed on its premises. This goes both ways on limit orders, as both makers and takers get the same 0.30% trading fee. There are no withdrawal fees on SushiSwap.
As a liquidity provider, you receive a discount on trading fees and only have to pay 0.25% on a per-trade basis. The other 0.05% goes directly to SUSHI token holders. All fees are accumulated to the trading platform’s liquidity pool, as the platform offers users the option to redeem them on withdrawals.
Is SushiSwap Safe to Use?
SushiSwap has never fallen prey to any malicious attacks, scams, breaches or hack attempts. While the trading platform is one of the newest prominent decentralized crypto exchanges, it also features one of the most advanced and well structured security infrastructures.
Plus, SushiSwap urges its customers to activate the two-factor authentication (2FA) feature that notifies them every time a login or withdrawal attempt is being made.
It’s noteworthy to mention that SushiSwap has not been not subjected to third-party audits since its launch. So, security comes down to trust. In reality, depositing funds to smart contracts can always go wrong. If you don’t trust the exchange, don’t put all of your crypto assets into smart contracts.
The trading platform’s customer support team is very attentive and can be contacted through an official email or on SushiSwap’s official social media pages. Users can just drop a direct message on the platform’s inbox if they have any difficulties or problems regarding any of the tools, features, or offerings.
SushiSwap also offers traders a neatly organized knowledge library that comes in the form of an FAQ section where they are able to educate themselves on how the platform is built and how it works, as well as find answers to any queries on entanglements that they might be facing.
How does xSUSHI work?
Users are able to lend their xSUSHI assets as collateral for ETH, and employ the newly acquired ETH for farming digital assets that have higher annual percentage yields (APYs). They can also use it to maximize their token’s yield potential. The good news is that traders are able to unstake their assets at any point and time. They don’t have their hands tied by vesting periods.
Can I stake SushiSwap on Coinbase?
Yes. Users are able to stake SushiSwap on Coinbase if they have a crypto wallet. They can even make use of the native Coinbase Wallet itself. The Coinbase Wallet does not require users to have an account registered on the Coinbase exchange in order for them to access and store assets on it.
What countries are supported by SushiSwap?
SushiSwap is a global crypto trading platform that can be accessed from most corners of the world. It’s available in most territories and countries including the USA, South Africa, Monaco, Singapore, Australia, etc.
Does SushiSwap have a native crypto wallet?
Unfortunately, SushiSwap does not provide a custodial crypto wallet, because the platform itself is non-custodial, which means that it does not store funds or digital assets of any kind. Some of the crypto wallets that are popular with users of the platform include Metamask, Atomic Wallet, Portis Wallet, and Wallet Connect.
A Few Words Before You Go…
The fact that SushiSwap is a trading platform that can be utilized both as a decentralized exchange (DEX) and as an automated market maker (AMM) makes it one of the most versatile crypto exchange platforms on the Ethereum blockchain. SushiSwap has made it easier than ever for users to engage and make the most of token swaps, expand their horizons by employing novel and revolutionary features, such as the Sushi Bar or the platform’s stellar BentoBox dApps.
The development team at SushiSwap has managed to put together a smooth, easy-to-navigate, yet in no way limiting UI that will pertain to traders from all skill levels.
Centralized exchanges might still be at the forefront when it comes to the crypto ecosystem, however, decentralized finance along with open-source DeFi protocols such as Aave and Yearn are catching up by offering an avalanche of stablecoins as well as a consistent trading volume on a per-month basis.
The only downside is that the platform doesn’t support direct fiat deposits. Users that aren’t in possession of cryptocurrency will have to go through a third party and convert their fiat to crypto before they can take advantage of what SushiSwap has to offer.