Sushi

Market Making

Sushi is a decentralized exchange that allows anyone to trade crypto assets and provide liquidity to earn trading fees.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
The team at Sushi innovated the concept of yield farming by creating its own SUSHI governance token to incentivize users to provide liquidity on its own decentralized exchange (DEX) instead of on Uniswap.
What we like less
The developer team has seen a lot of turmoil and the platform is hindered by its lack of a core focus as it tries to be a jack of all trades.
What it means for you
Provides you one of the main exchanges to market make across DeFi given its high total value locked (TVL) and strong branding.

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Information
Exploit/Hacks
One
Info
  • Website
  • Token: SUSHI
  • Tags: Market Making
Key Metrics
  • TVL: $252.1M (Rank #50)
  • TVL Ranking by Market Making: #0
  • Blockchain: Ethereum, Arbitrum, Polygon, Base, Boba, xDai, Moonriver, Binance, Celo, Arbitrum Nova, Harmony, Fantom, Avalanche, Boba_Bnb, Scroll, Filecoin, Linea, Blast, Fuse, OKExChain, SKALE Europa, RSK, Moonbeam, ZetaChain, Telos, Palm, CORE, Optimism, Polygon zkEVM, Bittorrent, Kava, Metis, HAQQ, ThunderCore, Heco, Boba_Avax
  • Chain TVL
    • Ethereum: $194.16M
    • Arbitrum: $21.96M
    • Polygon: $18.02M
    • Base: $11.23M
    • Boba: $1.47M
    • Others: $5.22M
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors including PeckShield and Quantstamp
  • Anonymous team reduces transparency
  • One unmitigated protocol hack since launch
Protocol Maturity
  • Core protocol launched in 2020; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 1% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • At least one moderate governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
  • Sushis rise to fame started when it forked Uniswaps code and vampire attacked its liquidity by pioneering the concept of paying rewards in SUSHI tokens to draw in liquidity providers; it currently lacks a management team
Things to know about Sushi

How Sushi works

Sushi enables the creation of liquidity pools to swap one token for another. Investors can provide liquidity in pools directly from their wallets and earn yield on swaps. All interactions with Sushi are fully transparent as they are on-chain. It is based on the Automated Market Maker (AMM) model which uses a constant product curve (x * y = k) to determine the exchange rate based on the ratio between the two assets, the trade size and the amount of liquidity within the pool. The liquidity pools charge a fee on every trade.

How Sushi makes money

Sushiswap charges a 0.3% fee on all trades within its liquidity pools. Unlike Uniswap, Sushi distributes 0.05% of the fee to SUSHI token holders proportional to the amount they stake on the platform.

How you make money on Sushi

As a liquidity provider (LP) on SushiSwap, you earn 0.25% of every trade within a pool, in additon to yield farming rewards paid in native protocol tokens. SUSHI holders can also earn a portion of protocol fees by staking on the platform in exchange for xSUSHI.

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Sushi Pools
Sushi SUSHI-ETH Market Making
4.6%
Yield
$4M
TVL
Risk
B
Protocol
Sushi
Chain
Ethereum
Sushi AAVE-ETH Market Making
6.5%
Yield
$920K
TVL
Risk
B
Protocol
Sushi
Chain
Ethereum
Sushi COMP-ETH Market Making
3.2%
Yield
$853K
TVL
Risk
C
Protocol
Sushi
Chain
Ethereum
Sushi ETH-DPX Market Making
0.7%
Yield
$655K
TVL
Risk
C
Protocol
Sushi
Chain
Arbitrum
Sushi ETH-USD Market Making
7.8%
Yield
$450K
TVL
Risk
C
Protocol
Sushi
Chain
Arbitrum
Sushi LDO-ETH Market Making
8.1%
Yield
$113K
TVL
Risk
B
Protocol
Sushi
Chain
Ethereum
Sushi SUSHI-ETH Market Making
6.2%
Yield
$97K
TVL
Risk
B
Protocol
Sushi
Chain
Arbitrum

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