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

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
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.
Key Metrics
  • TVL: $389.2M (Rank #24)
  • TVL Ranking by Dexes: #5
  • Blockchain: Ethereum, Arbitrum, Polygon, Arbitrum Nova, xDai, Fantom, Boba, Binance, Celo, Avalanche, Harmony, Moonriver, Boba_Bnb, Fuse, Boba_Avax, Kava, OKExChain, Heco, Telos, Palm
  • Chain TVL
    • Ethereum: $285.15M
    • Arbitrum: $68.65M
    • Polygon: $22.15M
    • Arbitrum Nova: $3.09M
    • xDai: $2.88M
    • Others: $7.33M
Risk Assessment
Watch Out
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 two years minimizes technical risk as smart contracts are amongst the most battle-tested
  • Top 1% by total value locked reduces risk
  • Decentralized governance increases transparency
  • At least one critical governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No concerns identified
  • Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
  • Sushi's rise to fame started when it forked Uniswap's code and vampire attacked its liquidity by pioneering the concept of paying rewards in SUSHI tokens to draw in liquidity providers.
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.

Sushi Pools