SushiSwap is a decentralized cryptocurrency platform, allowing users to swap, earn, lend, borrow and leverage all on one decentralized, community-driven platform. Even with its controversial background, SushiSwap is still one of the most popular DeFi platforms in the industry.
In this SushiSwap review, we take a look at the platform and its background, the SUSHI token, supported cryptocurrencies, fees, support, features, and if the platform is safe.
What is SushiSwap?
SushiSwap is a fork of UniSwap, one of the most popular decentralized exchanges (DEXes), and therefore has a very similar look and feel to the platform. However Sushiswap is always evolving with over 20 supported wallets, it supports 14 chains including the likes of Ethereum, Binance Smart Chain, and Polygon. Plus there are now more than 150,000 holders of their own SUSHI token.
The decentralized cryptocurrency platform, SushiSwap launched in 2020 and was founded by the entity known as Chef Nomi who controversially made a sudden departure in September 2020 taking $14 million in Ether with him which he subsequently handed back and transferred ownership of SushiSwap to FTX CEO Sam Bankman-Fried.
The SushiSwap token SUSHI is a multi-chain token that is also available on Ethereum, Binance Smart Chain, Polygon, Solana, Avalanche, Xdai, and Fantom.
Because SushiSwap is decentralized and non-custodial, there is no sign-up procedure to follow. Also, there’s no KYC (Know your customer) to complete or any ID checks.
Simply connect up a supported wallet to start using the app.
When you connect your wallet, the network will automatically detect. Sushiswap can connect to a whole host of different chains or networks which could potentially save you on transaction fees as at the time of writing this SushiSwap review, Ethereum fees are currently high.
SushiSwap supports a whole host of tokens across the 14 different chains or networks, which include Ethereum based or ERC20 tokens, Binance Smart Chain BEP20 tokens, and MATIC tokens.
When swapping with SushiSwap, users pay a fee of 0.3%. Plus users will also need to pay transaction fees for approving and interacting with the connected network. These fees will depend on the network. For example, at the time of writing this SushiSwap review, the fees with Ethereum are quite high.
How to Earn with SushiSwap
There are 4 different ways that you can earn rewards with SushiSwap;
- Providing Liquidity
- Staking SUSHI
By providing liquidity you can earn 0.25% of all trade on the pair that you add into the pool. You can claim these rewards when you withdraw later.
To be a liquidity provider you will be adding an equal share of 2 different tokens and in return, you receive SushiSwap liquidity provider (SLP) tokens that represent your share of the pooled liquidity for that token pair. Depending on the pool and the network you are connected to, you may be able to stake your SLP tokens in a farm.
Depending on the network that you are connecting to, you can sometimes stake your SushiSwap Liquidity Provider (SLP) tokens, with varying amounts of annual interest and SUSHI you can earn per day. These will depend on the pair, the farm, and the risks.
For example, where rates are high, this could be because the Total Value Locked (TVL) rate is low. Therefore it’s worth checking out the available farms and doing an element of risk management before just going for the farm with the highest APYs.
With some farms, you can even earn double the rewards too. In fact, with Polygon you can currently earn both SUSHI and MATIC in all the available farms at the time of writing this SushiSwap Review.
Another way of earning interest is by simply staking your SUSHI for xSUSHI. For every swap on the exchange, 0.05% of the fees are distributed as SUSHI (proportional to your share of the SushiBar). When you stake your SUSHI you receive xSUSHI in return which can be used for voting rights and as a token that can interact with other protocols.
The xSUSHI is continuously compounding and when you unstake you will receive all the originally deposited SUSHI and any additional from fees.
With lending, you can lend your assets with no risk of impermanent loss by using what is called “isolated lending markets”. In other words, if you have assets that you want to earn additional interest on you can lend them and earn interest from borrowers.
For example, you can currently lend the likes of USDC at a rate of 9.93% without having to enter a pool first or stake any SLP tokens.
With SushiSwap, due to its decentralized nature, there is not 1 dedicated in-house support team available to answer support queries. However, there is a community-run documentation site that can be used for assistance with the SushiSwap site.