SushiSwap is an Automated Market Maker (AMM) and a decentralized exchange (DEX) on Ethereum. It was created by an anonymous person who goes by the name Chef Nomi as a fork from Uniswap. Yet, SushiSwap is considerably more decentralized and community-driven than Uniswap. These features make it one of the innovators and biggest DEXes in the market.
SushiSwap is an AMM, which means that there is no centralized order book to coordinate buy and sell orders from users. Instead, it uses liquidity pools that automatically balance the price and value of cryptocurrencies, so people can deliberately trade without the interference of a third party.
What sets SushiSwap apart from Uniswap is its decentralized initiatives and SUSHI token.
First, unlike Uniswap who imposes a 0.3% fee for every transaction that will be transferred to the liquidity providers, SushiSwap gives 0.25% fee to liquidity providers and 0.05% to SUSHI holders.
Second, the SUSHI tokens have many use cases within the protocol other than governance. For instance, users can stake SUSHI in SushiBar to receive further economic benefits.
SUSHI is the native utility and governance token of SushiSwap. It has 250,000,000 in total supply, among which 127,244,443 tokens are in circulation.
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