What is SushiSwap (SUSHI)?

Since its launch in the summer of 2020, SushiSwap (SUSHI) has been one of the leading decentralized exchanges (DEX) today. It also operates as a cryptocurrency token called SUSHI.

The platform runs on the Ethereum blockchain and is similar to Uniswap. In fact, this platform was created with Uniswap’s concept in mind. And they took a great deal from the platform, including liquidity and users. The methods employed to create this platform have been dubbed “vampire mining” by experts in this space.

However, the platform was no short of controversy during its start since the founder, Chef Nomi, cashed out from the project. People knew they had been scammed, leading to a sharp price fall of the token.

Fortunately, things returned to normal after Sam Bankman-Fried took over the management. Chef Nomi later returned the funds he had taken, and the administration handed over the governance to the SushiSwap (SUSHI) holders.

Who Created SushiSwap (SUSHI)?

SushiSwap was created in August 2020 as a Uniswap clone. This is because it forked its concept from the leading decentralized exchange, Uniswap.

Its founder and creator go by a pseudonymous account, Chef Nomi. Not much is known about this figure, as he started controversies shortly after the project’s launch.

The controversies included swapping $14 million worth of Sushi on the Uniswap decentralized exchange for Ethereum. After this turmoil, the management changed, and Sam Bankman-Fried took over, giving authority to the holders.

However, Chef Nomi apologized and bought back all his sold tokens though he remains a sidelined figure. As of this writing, 0xMaki, a developer and co-founder, is the leader of the SushiSwap crew.

How Does SushiSwap (SUSHI) Work?

Apart from being a cryptocurrency token, SushiSwap acts as an exchange where individuals can swap crypto assets. The platform operates as an Automated Market Maker (AMM) in that there is no entity regulating the trades. However, there is the use of smart contracts to facilitate these transactions.

The platform draws funds from a liquidity pool usually funded by its users. Anyone on the platform can become a Liquidity Provider through locking crypto pairs. When you become a liquidity provider, you are entitled to a 0.05% earning from the platform’s trading fees.

Moreover, you do not need an account to transact on the SushiSwap platform. All you need to do is connect your crypto account to the exchange and trade, swap or stake your assets.

However, note that you cannot buy SushiSwap with fiat currency. Instead, you have to use a centralized exchange and transfer the funds to your wallet for use on this platform.

Is SushiSwap (SUSHI) a Good Investment?

There are various reasons you can invest in SushiSwap (SUSHI). Among them is the ability to propose how the platform should operate or pose new growth ideas.

You have a possibility of earning passive income when you stake your assets on the platform’s lending program. The interest you gain amounts to 0.05% on the trading fees. You can also increase your passive income by lending your tokens on Kashi, the platform’s Dapp. Moreover, since the team is active in the project’s growth and expansion, you can expect the token to increase in value.