Sushiswap
SUSHI
Project overview
Originating from a fork of Uniswap in late August 2020, SushiSwap is an Ethereum-based decentralized exchange (DEX) that facilitates the swapping of crypto assets through an automated market-making (AMM) system.
Technology
SushiSwap’s technology is built on the Ethereum blockchain, leveraging the AMM model to enable trading without the need for traditional order books. Tokenholders can become liquidity providers by creating or staking their assets into liquidity pools and in return, receive a portion of the trading fees plus SUSHI tokens as rewards – this is known as “liquidity mining”. These pools create a market for any pair of tokens, allowing users to trade directly with the pool rather than with individual buyers and sellers
SushiSwap has expanded its offerings to include features such as Kashi (a lending and margin trading platform), BentoBox (a token vault that allows for innovative dApp creation), and MISO (a launchpad for new tokens), broadening its ecosystem beyond being a decentralised exchange. SushiSwap recently introduced its new liquidity solution Sushi bonds in attempt to boost the projects’ Return on Equity (ROE) compared to traditional liquidity mining.
Token supply model
SUSHI’s supply is capped at 250 million tokens and adopts an inflationary token supply model where newly issued SUSHI tokens are distributed to liquidity providers as rewards. However, a portion of the trading fees generated on the platform is used to buy back SUSHI tokens on the open market and burn the tokens from the circulating supply. This feature can potentially counterbalance the inflation rewards should trading activity increase on the SushiSwap platform.
Disclaimer: The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorisation or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes.