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What is Sushiswap (SUSHI) and how does it work?

by Financial Economy

SushiSwap (SUSHI) operates as an automated market maker (AMM). An increasingly popular tool among cryptocurrency users, AMMs are decentralized exchanges that use smart contracts to create any token pair. SushiSwap was released as a fork of Uniswap in September 2020. Detailed information on what is Sushiswap SUSHI and how does it work, Sushi comments, what does Sushi coin do, etc. is in the continuation of the article. You can browse here for information about Waves coin.

What is Sushiswap (SUSHI) and how does it work?

SushiSwap was released as a fork of Uniswap in September 2020. AMM attracted a lot of attention during the same period with the commercial boom in DeFi tokens, concurrent with the popularity of decentralized finance (DeFi). SushiSwap aims to diversify the AMM market and also add additional features not previously available on Uniswap, such as increased rewards for network participants with the native token SUSHI. Sushi (SUSHI) is the management token of SushiSwap and this is one of the things that distinguishes SushiSwap from UniSwap.

SushiSwap allows the trading of cryptocurrencies via swaps with a commission of 0.3%. While 0.25% of the fees go to the liquidity providers, the remaining 0.05% is converted to SUSHI and goes to the owners of the SUSHI token. Anyone can provide liquidity to SushiSwap pools. Users can provide 1:1 liquidity. For example, if users want to provide 2ETH, they must first convert 1ETH to SUSHI using the Swap function.

In addition, users can provide liquidity to different trading pairs. Those who provide first liquidity have the power to set prices. But still, prices will correct themselves through arbitrage. Users receive SushiSwap liquidity provider token (SLP) by funding pools. This, in turn, shows their stake in any pool and allows them to withdraw their funds from the pools without charge.

So who founded Sushiswap? SushiSwap was founded in August 2020 by anonymous Chef Nomi and 0xMaki. While not much is known about the founders, their project caught the attention of many and was listed by Binance in September 2020.

For information about crypto currency: https://en.wikipedia.org/wiki/Cryptocurrency

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