What is SushiSwap?
SushiSwap is a decentralized exchange (DEX) built on the Ethereum blockchain. It was launched in September 2020 as a fork of Uniswap, another popular DEX. SushiSwap aims to provide users with a more community-driven and decentralized alternative to centralized exchanges. SushiSwap uses an automated market maker (AMM) system to determine the price of tokens. This system allows users to trade tokens without relying on a traditional order book system used by centralized exchanges. Instead, the AMM system uses a pool of liquidity, which is supplied by users who deposit tokens into a smart contract
What are the core features of SushiSwap?
- Automated Market Maker (AMM) system: SushiSwap uses an AMM system to determine the price of tokens. This system allows users to trade tokens without relying on a traditional order book system used by centralized exchanges. Instead, the AMM system uses a pool of liquidity, which is supplied by users who deposit tokens into a smart contract.
- Decentralization: SushiSwap is a fully decentralized protocol that operates on the Ethereum blockchain. This means that it is not controlled by any central authority or intermediary.
- Governance token: SushiSwap has its own governance token called SUSHI, which allows holders to participate in the decision-making process for the protocol. SUSHI holders can vote on proposals related to the platform’s development and governance, such as changes to fees or the addition of new features.
- Yield farming: SushiSwap introduced yield farming, which allows users to earn rewards in SUSHI tokens for providing liquidity to the platform. Yield farming incentivizes users to provide liquidity to the platform, which helps to increase trading volume and liquidity.
- Support for multiple blockchain networks: SushiSwap has expanded beyond Ethereum, with a multi-chain strategy that includes support for other blockchain networks such as Binance Smart Chain and Polygon (formerly Matic Network).
- Non-custodial: SushiSwap is a non-custodial platform, which means that users remain in control of their funds at all times. Users do not have to deposit their tokens with a centralized exchange or a third party, but rather retain ownership of their tokens in their own wallets.
- Community-driven: SushiSwap is a community-driven platform that is governed by its users. The platform relies on the participation and involvement of its community to grow and evolve over time.
What is the native token of SushiSwap and where can I buy it?
The native token of SushiSwap is called SUSHI. It is an ERC-20 token that was created to facilitate governance and incentivize liquidity provision on the platform. You can buy SUSHI on various cryptocurrency exchanges that support ERC-20 tokens. Some popular exchanges where you can buy SUSHI include Binance, Coinbase Pro, Huobi, and Uniswap.