Sushi
Sushi is a decentralized exchange that allows anyone to trade crypto assets and provide liquidity to earn trading fees.
- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: SUSHI
- Tags: Market Making
- TVL: $306.8M (Rank #44)
- TVL Ranking by Market Making: #0
- Blockchain: Ethereum, Arbitrum, Polygon, Base, xDai, Boba, Binance, Celo, Moonriver, Arbitrum Nova, Harmony, Fantom, Boba_Bnb, Avalanche, Filecoin, Blast, Fuse, Heco, Scroll, OKExChain, ZetaChain, Telos, Palm, Kava, Bittorrent, Metis, CORE, Boba_Avax
- Chain TVL
- Ethereum: $238.08M
- Arbitrum: $29.1M
- Polygon: $16.92M
- Base: $13.69M
- xDai: $2.22M
- Others: $6.75M
- Code reviewed by several experienced auditors including PeckShield and Quantstamp
- Anonymous team reduces transparency
- One unmitigated protocol hack since launch
- 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
- No death spiral concerns
- This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
- Sushi
s 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
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.
