What is SUSHI and what is the Sushiswap platform?
What is the SUSHI token? What does Sushiswap platform offer? And what are the interesting technological underlinings behind SUSHI?
Let's find the answer together in Bitkub Academy's article; What is SUSHI!
What is SUSHI?
Sushiswap (SUSHI) is a Decentralized Exchange (DEX) platform situated on the Ethereum network that functions with the maintenance of an Automated Market Maker (AMM) mechanism, that exchanges pairs of digital assets in Liquidity Pools through smart contracts without any intermediary.
Sushiswap was launched in September 2020 by a figure under the name of “Chef Nomi” as a fork from Uniswap which is also a DEX. The regulator was later replaced by the CEO of the FTX exchange, Sam Bankman-Fried. If you are already familiar with Uniswap, it would be easy to understand Sushiswap.
Sushiswap currently offers a wide range of financial services based on the Decentralized Finance (DeFi) premise, including Yield Farming, lending through Kashi Lending, participating in lending and purchasing newly issued DeFi Tokens through MISO and staking coins to earn xSUSHI, which is a secondary coin in the system in return for working within the network.
Kashi is a loan service platform built on BentoBox, under SushiSwap, that offers low fees and is different from traditional DeFi platforms. Kashi is a lending service platform that separates itself from other markets, separating the risks between lending and other services as well as offering flexible interest rates based on supply and demand.
BentoBox is where tokens are stored as the future infrastructure for the upcoming DeFi platform within Sushiswap. For example, the Kashi platform uses assets from BentoBox for borrowing. Users can deposit any token that is not in use or are simply in hold. Those who deposit tokens in the BentoBox will also receive a return on their deposit.
Moreover, BentoBox also saves gas fees that occur by transferring coins to decentralized applications (dApps) by connecting to BentoBox and transferring the coins to be stored there. Then, transactions with dApps that use BentoBox can be further transferred in an instant without having to pay for fees again.
MISO is a set of smart contracts created to simplify the process of launching new projects on SushiSwap, where project owners can customize their own token launch as well as fundraising through MISO, where project owners can create or launch tokens in a structured manner with what is known as a “recipe”.
MISO's Ingredients are like structure and instant forms of issuing new tokens, such as choosing a project participation method, token type and locking coin condition. This will facilitate developers in terms of both resources and convenience.
SUSHI tokens that are obtained from Yield Farming, in addition to the 2 currencies that users deposited within the system, can also be staking. You can earn rewards in xSUSHI tokens from locking SUSHI based on the 0.05% transaction fee on Sushiswap and the 9% fee from loan services in Kashi.
Sushiswap is one of the platforms that has a Governance Token, which is SUSHI. Holders will receive a return from the fees on the platform. In addition, SUSHI holders can also submit suggestions for platform development. SUSHI has a total maximum supply of 250,000,000 SUSHI.
SUSHI’s Interesting Points
1.Offers a variety of services
If you are a Sushiwap user, you will find a wide range of services including DEX, Farming, Lending, Staking and many other services that may occur in the future under Sushiwap.
2. Easy project launch
Project owners that want to issue tokens can do so with the system provided by Sushiswap, including setting certain conditions on their own, which greatly simplifies the launch process.
3. Reduction in fees
Transactions with any dApps may require a fee to transfer coins between platforms, but if you connect to BentoBox and store the coins in it, you will be able to transact with any Dapps without any fees.
In reference to statistics from Coinmarketcap on October 27, 2021, SUSHI is ranked as the 80th highest in terms of market capitalization, with around 1.44 billion U.S. dollars or around 4.8 billion baht. SUSHI’s maximum supply is fixed at 250,000,000 SUSHI with a current 127,244,443 SUSHI in circulation. Additionally, SUSHI once made an all-time high at 778.29 baht and is hovering around the price of 378.25 baht at the time of writing.
Sushiswap is a decentralized digital coin exchange platform that offers more than just exchange service. It is one of the factors that will attract more users with relatively high returns and it has more function than other platforms such as Sushiswap's BentoBox function, which is an infrastructure for storing coins in the system to generate rewards and use it in various platforms within Sushiswap.