Hey Publish0x community! Welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.
In this article we talk about more features of SushiSwap!
In the last E&S article I introduced you SushiSwap (SUSHI) and I said that is a decentralized cryptocurrency exchange built on the Ethereum blockchain. It aims to be the evolution of the most popular Ethereum-based DEX in the cryptocurrency market, UniSwap. It is almost the same as Uniswap in appearance and function. SushiSwap rewards those who deposit cryptocurrency to provide liquidity to the protocol through SUSHI. SUSHI is an ERC-20 token that is provided to liquidity providers on SushiSwap and can be used for the governance of the protocol.
Today we will see more specifically 3 things:
- SushiSwap uses and benefits.
- Peculiarities of SushiSwap.
- How it works.
So, let's start discovering some benefits of this interesting project!
SushiSwap uses and benefits
- Users swap crypto once they connect their wallets to the SushiSwap exchange
- SUSHI allows users to participate in protocol governance.
- SushiSwap permits users to trade crypto in a decentralized way.
- Investors who have SUSHI make decisions concerning the SushiSwap protocol.
- Users can contribute to trading pairs that are yet to be created
SushiSwap offers more affordable fees. These fees are lower than many other centralized exchanges. SushiSwap users incur a 0.3% fee for joining any liquidity pools.
Peculiarities of SushiSwap
- The main innovation of SushiSwap is the introduction of the SUSHI token. Liquidity providers on SushiSwap receive SUSHI tokens as a reward. The platform differs from Uniswap in this respect because the tokens enable holders to qualify for a portion of transaction fees after they cease to provide liquidity.
- SushiSwap does not use an order book like most traditional DEX. Even without an order book, automatic market makers (AMM) do have liquidity problems. In some aspects, SushiSwap has some similarities with UniSwap. But it allows more community participation.
- SushiSwap handled the criticism of UniSwap because venture capitalists interfered with its platform. There are also concerns that UniSwap's governance method lacks decentralization.
- SushiSwap eliminates UniSwap's decentralization problem by providing governance rights for SUSHI holders.
How it works
The SushiSwap Exchange lets you easily swap between 100+ ERC-20 tokens. As with Uniswap, no KYC is required to use the SushiSwap exchange. All you need is a Web 3.0 wallet such as Metamask and some Ethereum to pay gas fees to execute swaps. Trading fees on the SushiSwap exchange are 0.3%, the same as Uniswap.
SushiSwap has introduced "formal" liquidity mining pools. Liquidity providers can earn a 0.25% reduction in transaction fees on the platform by depositing equal amounts of two cryptocurrencies into the existing pool on SushiSwap or creating their own pool. The liquidity provider obtains the SushiSwap liquidity pool token (SLP token) as Uniswap's LP token. As you may have guessed, these tokens are now used to replace Uniswap's LP tokens to produce farms.
SushiSwap’s Menu contains the former yield farming “pools” found in the initial release of the protocol. However, instead of Uniswap’s LP tokens, SushiSwap’s own SLP tokens are staked to earn varying amounts of annual interest.
Staking and farming are one of the features of SushiSwap that DeFi users can enjoy without restriction. These features are not demanding but provide a more consistent return on investment. However, new users prefer staking to transactions because they don't have much to do. The SushiBar app enables users to stake their SUSHI coins and earn additional cryptocurrency. When they pledge the required amount of SUSHI tokens in the SushiSwap smart contract. They earn xSUSHI tokens in return. This xSUSHI comes from the SushiSwap token staked by the user plus any proceeds obtained during the staking process.
If you've been following me for a long time, you'll already know that I'm a lover of staking. I have already done several articles about it that you can find in my profile. If instead you like more the video format, I leave you some links to some of my videos on YouTube where I talk about staking.
With this second article about SUSHI we have discovered new things about SushiSwap Swap, peculiarities and platform!
Next week I’ll introduce you a new cryptocurrency!
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