SushiSwap, with its whimsical name inspired by Japanese cuisine, is more than just a tongue-twister—it’s a revolutionary force in the decentralized finance (DeFi) realm. Launched in September 2020 as a fork of Uniswap, SushiSwap rapidly carved out its niche by enhancing the automated market maker (AMM) model. Unlike traditional exchanges, SushiSwap relies on smart contracts to create liquidity pools for token pairs, thus eliminating intermediaries and reducing costs. The platform’s native token, SUSHI, not only incentivizes liquidity providers but also grants holders governance rights, empowering users to shape SushiSwap's future. Dive in to discover how SushiSwap redefines DeFi and why it's more than just a flash in the pan.

What Is SushiSwap (SUSHI)?

SushiSwap (SUSHI) is an example of an automated market maker (AMM). An increasingly popular tool among cryptocurrency users, AMMs are decentralized exchanges that use smart contracts to create markets for any given pair of tokens.

SushiSwap launched in September 2020 as a fork of Uniswap, the AMM which has become synonymous with the decentralized finance (DeFi) movement and associated trading boom in DeFi tokens.

SushiSwap aims to diversify the AMM market and also add additional features not previously present on Uniswap, such as increased rewards for network participants via its in-house token, SUSHI.

Who Are the Founders of SushiSwap?

SushiSwap was founded by the pseudonymous entity known only as Chef Nomi. Little is known about Chef Nomi, or his or her impetus for forking off from Uniswap.

The project has two other pseudonymous co-founders, sushiswap and 0xMaki, also known as just Maki. Between them, they handle SushiSwap’s code, product development, and business operations.

Bankman-Fried is a well-known participant and cryptocurrency market commentator, regularly appearing in media interviews.

What Makes SushiSwap Unique?

SushiSwap primarily exists as an AMM, through which automated trading liquidity is set up between any two cryptocurrency assets.

Its main audience is DeFi traders and associated entities looking to capitalize on the boom in project tokens and create liquidity.

AMMs do away with order books entirely while avoiding problems such as liquidity issues, which hamper traditional decentralized exchanges.

SushiSwap aims to improve on the offerings of its parent, Uniswap, by increasing the impact users can have on its operations and future.

The platform takes a 0.3% cut from transactions occurring in its liquidity pools, while its SUSHI token is used to reward users portions of those fees. SUSHI also entitles users to governance rights.

How Many SushiSwap (SUSHI) Coins Are There in Circulation?

SushiSwap’s in-house token SUSHI is created at a rate of 100 tokens per block. The first 100,000 blocks had a block reward of 1,000 SUSHI.

The supply of SUSHI will depend on the block rate. At approximately 6,500 per day, and therefore 650,000 newly-minted tokens per day, there will be roughly 326 million tokens in circulation by September 2021, a year after SushiSwap first launched.

SUSHI had no premine, and began to be minted at Ethereum block number 10,750,000, beginning with a supply of zero tokens.

How Is SushiSwap Network Secured?

SushiSwap attempts to mitigate the traditional risks of depositing funds in smart contracts by upping the governance powers of its users.

The anonymity of its developers poses questions beyond a technical standpoint. In September 2020, for example, Chef Nomi was involved in a spat with users after withdrawing 38,000 in Ethereum (ETH) from SushiSwap. The funds were subsequently returned, with Chef Nomi publicly apologizing for doing so and calling the move a mistake.

Where Can You Buy SushiSwap (SUSHI)?

SushiSwap (SUSHI) is a freely-tradable token, with the majority of volume on major exchanges occurring on Binance, Huobi Global and OKEx.

Pairs against other cryptocurrencies and stablecoins are active, as well as with fiat, including on Bankman-Fried’s FTX exchange.

New to cryptocurrency? Learn how to buy Bitcoin and other tokens here.

Related Pages:

Learn more about Uniswap’s distribution on the CMC blog here.

New to DeFi? Learn more about it here.

Cryptocurrency newbie? Check out Alexandria, CoinMarketCap’s dedicated education suite.

The Purpose and Utility of the SushiSwap Crypto Token

The SushiSwap crypto token, SUSHI, serves as a governance and utility token within the SushiSwap ecosystem. It has a maximum supply of 250 million tokens, with 51% currently in circulation. Liquidity providers receive SUSHI when traders swap tokens, as 0.25% fee proportional to LP’s stake in a given liquidity pool.

The primary purpose of the SUSHI token is to facilitate governance and voting on major protocol developments within the SushiSwap community. Token holders can vote on proposals and decisions, enabling a decentralized and community-driven platform. The SUSHI token also serves as a reward for users who provide liquidity, attracting users who seek passive income opportunities.

SushiSwap's main innovation is the introduction of the Sushi token, which provides governance rights to token holders and solves Uniswap's lack of decentralization. The token's "fair launch" approach to distribution eliminates venture capitalists from having a significant portion of the token allocation.

In addition to governance, the SUSHI token is used in staking and yield farming on the platform. Users can stake their SUSHI tokens in SushiBar to earn a portion of the fees generated by the platform. This encourages sustained participation and increases voting power for active members.

The SUSHI token addresses the need for a decentralized and community-driven exchange platform that empowers its users to influence its