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Sushiswap

SushiSwap is an Uniswap fork with the idea of taking the power out of the hands of the VC and returning it to the community.

 

Sushiswap

 

Sushiswap Introduction

Sushiswap was founded in September 2020 as a decentralized exchange (DEX) operating through an automated market maker (AMM) protocol, and was initially established on the back of the DeFi boom and the growing interest in Uniswap s bloodsucking attack successfully broke out and still has a place among the many projects of decentralized applications.

According to CoinGecko's live data shows that Sushiswap Among the many decentralized exchanges Top 16 ranking. Ranked Curve Finance After that (ranked by 24-hour transaction volume)

The current 24-hour trading volume alone is 60 million USD The number of visitors to the website has even reached 2.5 million people The number of .

To understand what a decentralized exchange (DEX) is, see. What is the DEX decentralized exchange? Introduction to the concept and features!

Sushiswap

Sushiswap Exchange Introduction

Sushiswap at the beginning of its existence

It is often said that Sushiswap and Uniswap are similar, but in fact Sushiswap is a perfect Tribute "Uniswap is a replica of Uniswap, in terms of code, user interface, and platform features.

At the beginning of the exchange, in addition to the need for users to join, it was more important that they had in their hands Mobility In order to quickly build up the liquidity of the platform, the Sushiswap team once again looked at the users of Uniswap.

Sushiswap is traded in the Uniswap LP pool and users can earn by pledging LP Token to the corresponding pool. Sushi Coins.

In order to reward early adopters and motivate them to pledge their currency, the project chose to increase the pledge bonus for early adopters (by a factor of 10) and to attract more Uniswap users who would like to participate in Sushiswap.

Sushiswap has since created a new LP pool on its own platform, with essentially the same pairs as Uniswap, except that users can redeem their $Sushi from Uniswap and pledge it in Sushiswap for a higher payout and transaction fees.

Sushiswap is a series of programs that pull users from other platforms to its own platform, also known as "Sushiswap". Vampire Attack ".

Sushiswap

Sushiswap Exchange Introduction


Automated Market Maker Agreement (AMM)

Automated Market Maker is a trading mechanism that determines the price of a coin through a constant formula that calculates the percentage of money in the pool.

The protocol will first establish a fixed product formula.

X (number of currencies) * Y (number of currencies) = K (constant value)

Automated Market Making Protocol

X and Y represent the total number of Tokens in the pair, and K is the fixed value obtained by multiplying the two totals, precisely because K value needs to be constant Therefore, the magnitude of X and Y will be Inverse relationship .

For example, when a user uses USDT to buy ETH, the total amount of USDT in the pool becomes larger and the ETH decreases. In order to keep the K value fixed, so later users need to spend more USDT to buy the same value of ETH, which is the mechanism of automated market maker (AMM).

Such a mechanism may seem perfect, but it is often due to Pool depth too low (K value is too small) problem, allowing users to trade in the process of price deviation from the actual exchange rate, which is commonly known as "the Slip Point ".

Such a problem can be solved by Increase the depth of the pool The more money in the pool, the smaller the slippage will be. In addition to giving users a proper trading experience, there is no fear of the platform running out of liquidity.

In vernacular terms, this means that the more a Token is bought (sold), the more it will be sold. The price will be higher the more you buy (and lower the more you sell) Therefore, the program must find ways to increase the volume of funds in the pool to reduce the chance of slippage.


Sushiswap Platform Features

Function 1: Token exchange

Token exchange is a feature offered by all decentralized exchanges.

It's essentially like taking fiat money to a bank to exchange it, but on a decentralized exchange (DEX) you are not subject to the scrutiny and restrictions of a bank, and you are also responsible for 100% of your assets.

During the trading process, you can not only know your transaction price, commission, purchase quantity, but also set the tolerance limit for slippage, Gas Fee cap...etc., which is quite convenient for users.

For detailed wallet operations, please refer to this article [ Teaching Metamask 】 Article.


Function 2: Liquidity mining

The biggest fear of both centralized and decentralized exchanges is the depletion of liquidity, which causes users to withdraw money when a run on a bank (The phenomenon of (wanting to withdraw money but the platform cannot provide it).

To avoid this, Liquidity encourages users to pledge tokens into the pool. As more money is injected into the pool, more users represent trust in the exchange, and these pledgers are rewarded with more fees (as the number of users goes up = the number of transactions goes up).

This type of user behavior, where users are rewarded for providing mobility, is called Liquidity Mining .

Liquidity mining operation steps : After entering Sushiswap, click on the second button above. Pool "and select Add "This is to increase the liquidity of the pool.

After selecting the pair you want to trade, press approve and simply bet the LP Token into the liquidity mine you want to execute.

According to the platform announcement, liquidity miners will receive 0.25 % of the total platform commission as a bonus, so the more people trade, the more you will get.

 

Function 3: Lending platform (Kashi)

Kashi is a money bank built into the Sushiswap platform. Lending Agreement based financing platform

Unlike common DeFi lending platforms, Kashi segregates "different lending pairs" so that if something happens to one pair, it does not cause significant damage to the platform as a whole, greatly reducing the risk to users of lending within the platform.

In addition, the user can also do the following in the lending platform.

  • Long and short assets
  • Introduction of margin mechanism to increase the utilization rate of user funds
  • Support users to create their own token pairs for borrowing and lending

Function 4: IDO Platform (MISO)

IDO is the first new coin offering on a decentralized platform (DEX), while MISO (Minimal Initial SushiSwap Offering), the IDO platform on Sushiswap, was established in May 2021 to provide project parties with the ability to raise capital directly from users on the platform.

Not only does it provide users with the opportunity to get an early start on potential coins, but if a project is successful in raising capital it can also build liquidity directly on Sushiswap, saving the effort of promoting the project from scratch.


Sushi Token (Sushi)

Token Function

$Sushi is a token issued by Sushiswap and currently has a total of Governance , , Arbitrage Two functions.

Governance Tokens : Token holders can decide the direction of the project by voting, and there are currently three voting opportunities open.

  • Decide on the trading pairs on the platform
  • Selecting the direction of Sushi project development, new application scenarios, etc.
  • Decide how the newly minted tokens should be distributed

Arbitrage : Users who hold tokens can split a portion of the transaction fee.

  • Sushi transaction fees will be split into two parts, one to be used to give back to the liquidity provider and the other to be converted into Sushi Token and distributed to the token holders

Historical Currency Prices

SUSHI's coin price has had a mixed fortune, reaching a high of $23 and a low of around $0.40.

自从2021 年底Sushi 亚太负责人AG 发文表示:「 Sushi 很遗憾地失败了 」后,币价就一直稳定在10 块以下游移。

 

Important Events Affecting $Sushiswap Coin Price

Sushi unfortunately failed !

Since its inception, Sushiswap has been in a state of turmoil, the most recent being the tweet by AG, the head of Sushiswap Asia Pacific, in late November 2021 stating that

"Sushi failed miserably, and hopefully the people who were bad for the organization will be identified and removed. When you start to lose faith in a project, you will never want to work for it. Things have changed. Sushi is no longer a community-driven project, it's a 'JORKN' company.

According to an interview with AG after the tweet, Joseph and core developer Keno had not updated their code for more than three months, and even the previous personnel changes were related to Joseph; two weeks after the incident broke out, CTO Joseph Delong On December 9, two weeks after the outbreak, CTO Joseph Delong said he would immediately leave the company and suggested looking for senior management from outside DAO to improve the current situation at Sushi.

After the resignation of the chief technician, the price of the currency rose instead of falling!

After Joseph's departure statement officially took effect, everyone thought that the confidence of Sushi's investors would be affected, and thus the price of the coin would flee; however, according to the information on that day, the price of $Sushi rose by nearly 20 % in just a few hours, which seems to mean that most investors, faced with the departure of the former technical chief, not only did not show FUD, but also were optimistic about the future development of Sushiswap. They are optimistic about the future development of Sushiswap!


How to deposit / operate Sushiswap

Before clarifying how to connect, you must first apply for a Metamask wallet, for detailed instruction you can refer to this article [ Teaching Metamask 】Article.

Step 1: Buy Sushi Coins

Buying Sushi coins is not a difficult task, according to Coinmarketcap The information shows that all common central/decentralized exchanges on the market can be bought.

This post will take Coin as an example, first going to Cryptocurrency website, log in, click on Transactions above and select the Standard version.

For detailed instruction on deposit, please refer to this article [ Coin deposit instruction in detail 】.


 

Search in the search bar on the right Sushi And find the pair you want to buy (i.e. through what coin, usually mostly USDT), and set the price and quantity you want to buy on the same page.


 

After a smooth transaction, tap on the top right corner of the Wallet" and select "Spot Wallet".


 

Step 2: Withdraw coins from the centralized exchange (Cex) to the Metamask wallet

Go to your spot account and click on the above "Account Withdrawal "and find Sushi  Coins and then in the function column on the right, select "Withdrawal" .


 

Finally the Copy Metamask's wallet address into the address field (The system usually detects the chain automatically.) Enter the amount you want to withdraw and press the "Withdrawal" Immediately complete.

Although the system will automatically detect the chain for you, it is still important to double check if it is correct in person.


 

Step 3: Connect the wallet on Sushiswap

First enter Sushiswap Click Enter App on the page of the website.


 

Tap on the page Connect to a wallet .


 

Select your usual wallet in the page (this one is based on Metamask (as an example).


 

Once you have done so, you will be able to access the Swap page, where you can enter the amount you wish to redeem, or use other features on the platform.


Sushiswap Benefits and Risk Analysis

Sushiswap Benefits

  • Low chance of being hacked compared to centralized exchanges
  • No KYC authentication and 100% asset management rights
  • Faster coin uploads than centralized exchanges, providing users with early layout opportunities
  • User-friendly and easy to use interface

Sushiswap Risk

  • No centralized exchange to assist in the confirmation of the transfer of funds, easy to produce the opportunity to transfer the wrong chain, address
  • More and more fake websites are running rampant, and if you connect your wallet to a fake exchange and authorize it, you will lose serious assets
  • Low censorship on the coins, users must do their own research before trading
  • Liquidity mining requires attention to impermanent losses
  • Recently, there are many events within the project side broke out, if investors panic out, there is a chance to cause liquidity decline

 


To sum up

If you want to invest in some coins that are not available on centralized exchanges, it is good to go to a centralized exchange.

However, with decentralized exchanges, there are still problems such as price slippage, theft of DeFi wallets, etc.

I recommend that people who want to try it first understand the process of how exchanges and cryptocurrencies work before they start trying it to reduce the chances of making mistakes.

 

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