Overview of SushiSwap Defi Protocol

Overview of SushiSwap Defi Protocol

Learn about the history, products, and governance mechanisms behind Sushi DeFi protocol.

Overview

SushiSwap is a Decentralized Finance (DeFi) protocol with an Automated Market Maker(AMM) that allows users to swap their assets in a decentralised and permissionless way.

SushiSwap Automated market maker is a fork of uniswap v2, so the two work in exactly the same way.

History

SushiSwap was founded by a pseudonymous group called Chief Nomi in August 2020 as a fork of Uniswap. The protocol gained a  lot of traction mostly due to the nature of its launch.

SushiSwap is aimed at directly competing with Uniswap by forking it and encouraging liquidity providers to move their liquidity to a new platform in a process called a Vampire Attack.

Initially launched on the Ethereum mainnet, SushiSwap now supports multiple chains ie Polygon, xDai, BSC, Fantom, Arbitrum, Moonbean etc

Products 

Besides the main function of Sushi, a decentralised exchange for swapping assets, the protocol offers a great range of other products:

  • Onsen 

This is a liquidity incentive system that accelerates new projects by providing extra rewards in the form of Sushi token. The projects selected to be on the system are given a certain allocation of sushi tokens to incentivise liquidity provision for their own token.

This means that the projects themselves don’t have to distribute their own token through liquidity mining and they can still benefit from incentivised liquidity

This is really useful for new projects that very  often struggle to bootstrap liquidity especially if they don’t want to initially distribute large amounts of their own tokens.

  • BentoBox

This is a special smart contract that acts as a vault for certain tokens.This vault is basically a pool of funds that can be used by Bento-enabled applications in the sushi ecosystem

Users who deposit funds into one of the BentoBox vaults benefit from earning extra yield on their tokens. Vaults can generate yield in multiple ways, for example, by allowing other participants to take flash loans and pay a small fee that goes back to the users providing liquidity to the vault or by lending out assets in the vaults

At the moment, the first and only available Bento-enabled application is the lending platform kashi,

  • Kashi

Meaning “lending” in Japanese is Sushi’s first lending  and margin trading solution powered by BentoBox. Kashi allows anyone to create customized and gas-efficient markets for lending and borrowing.

In contrast to other popular Defi money markets such as Aave or Compound, Kashi isolates each of the markets. This means that users can create markets for more risky assets without having an impact on other markets.

Having the ability to borrow an asset also opens up the possibility for shorting it.This is useful for speculators who believe that asset will go down in value but also for hedging, which can be  extremely handy, for instance when yield farming risky assets.

  • Miso 

This is a launchpad which facilitates launching of new tokens on Sushi.

It also focuses on providing a good experience for both the project creators launching new tokens and for people interested in finding and supporting these projects

Considering project creators, Miso offers a set of smart contracts that makes the process of creating a new token quite easier. On top of that it allows the project to attract a larger initial audience than they have been capable to reach on their own

Governance

The Sushi holders have to stake their Sushi tokens on SushiBar and receive the xSushi tokens.

The xSushi tokens maintain voting rights in Sushi governance.

Currently SushiSwap’s governance votes are managed on a snapshot page and depend on SushiPowah, a voting metric.

     •  1xSushi token= 1SushiPowah

Overview Widget

Networks

  • Ethereum
  • Polygon
  • Arbitrum
  • Avalanche
  • Moonbeam
  • Moonriver
  • Fantom
  • BSC
  • Gnosis
  • Harmony
  • Telos EVM
  • Celo
  • Fuse
  • OKEx
  • HECO
  • Palm

Governance Tokens

xSUSHI token

Leave a Reply

Your email address will not be published. Required fields are marked *

More from GCR

Greg d’Incelli - Scenius and the FTX impact on allocator appetite - Global Coin Research

Featured GCR Announcement GCR Exclusive Podcast

Greg d’Incelli – Scenius and ...

Gregory d’Incelli is the co-founder of Scenius Capital. Scenius is a digital assets and blockchain technology investment firm focused on providing sophisticated investors curated access ...

An Overview of Music NFTs - Global Coin Research

NFT

An Overview of Music NFTs

Introduction NFT or a non-fungible token is a unique digital asset on the blockchain that can be bought or sold. TheNFT movement has spread to ...

Insights

Writing NFTs As The New ...

The more I search for new perspectives on specific topics for my essays, the more I realize the difficulty of finding hidden gems and quality ...